Tariffs on Canadian goods having a ‘devastating effect,’ U.S. farmers say

American farmers are feeling the brunt of the U.S.-imposed tariffs on Canadian goods, with many saying the impact is devastating for the local agriculture sector. President Donald Trump recently announced new tariffs for dozens of countries, sparing Canada and Mexico in this round but keeping the 25 per cent tariffs on some Canadian products in place.

Doug Sombke, president of the South Dakota Farmers Union, expressed his concern over the tariffs, stating that they are already making it harder for U.S. producers to make a living. He mentioned that the price farmers are paid for their products is likely to decrease due to tariffs and counter-tariffs, while the cost of fertilizer and equipment is on the rise. Market prices have already seen drops since the announcement of the latest tariffs.

Sombke criticized the tariffs as a “horrible idea,” claiming that whoever thought tariffs were beneficial for the country does not understand civics or economics well. He highlighted that 90 per cent of South Dakota’s potash, a fertilizer, comes from Canada, and much of the farming equipment used carries a “made in Canada” stamp.

Bob Kuylen, vice-president of the North Dakota Farmers Union, echoed Sombke’s frustration with the tariffs, emphasizing that they could have a detrimental impact on the future of agriculture in the state. The 25 per cent steel tariffs could lead to higher costs for necessary farm equipment, making purchases more expensive for farmers.

Canadian agriculture economists are also concerned about the long-term effects of the U.S. tariffs. Ryan Cardwell, a professor at the University of Manitoba, stated that the uncertainty created by the recent policy changes in the U.S. has caused permanent damage to both countries’ economies. He warned that Trump’s trade policy has disrupted predictability for investors, which could slow economic growth in Canada, the U.S., and other countries trading with them.

Despite the possibility of Trump reversing the tariffs, Cardwell believes it might be too late to undo the damage. He emphasized that even if the tariffs were to disappear, the uncertainty would still linger, impacting investments and economic growth.

In North Dakota, where Trump enjoyed strong support in the 2020 election, Kuylen lamented the ongoing trade disputes with Canada, stating that they should focus on cooperation rather than conflict. Sombke expressed disappointment in seeing Trump turn trading allies into adversaries, urging farmers to work together with their international neighbors for the betterment of the world market.

The current situation has left American farmers feeling the strain of the tariffs imposed on Canadian goods, with concerns about the long-term economic impact on both countries. As they navigate through these challenges, they hope for a resolution that fosters cooperation and collaboration rather than division and conflict.