President Donald Trump announced on Monday that the US will impose tariffs on “external” agricultural products starting April 2, signaling another step toward trade protectionism.
In a social media post, Trump told American farmers to “get ready to start making a lot of agricultural product to be sold INSIDE of the United States,” but did not specify which imports would be affected or whether exceptions would be granted.
It remains unclear whether this move is part of his previously proposed “reciprocal” tariff strategy, which aims to impose duties on nearly all US trading partners.
Trump’s tariff plans
This is the latest in a series of tariffs that the president has proposed since his return to the White House.
US Commerce Secretary Howard Lutnick confirmed that tariffs on Canadian and Mexican goods will go into effect on Tuesday, but the final rates will be determined by Trump.
The president had previously threatened 25% tariffs on imports from both countries, citing concerns over illegal immigration and drug trafficking.
A 10% tariff on Chinese imports is also set to be implemented in response to allegations that Beijing is not doing enough to curb the flow of fentanyl into the US.
This would bring the total tariff rate on Chinese exports to at least 20%, following a prior 10% levy imposed last month.
He has also announced plans to impose a 25% tariff on automobile imports, along with similar duties on semiconductors and pharmaceutical products.
Additionally, Trump has also confirmed that a 25% tariff on steel and aluminum will take effect on March 12, with no exceptions.
The US is the world’s largest steel importer, with Canada, Brazil, and Mexico as its top suppliers.
Trump first imposed similar tariffs in 2018, but later granted exemptions for several countries, including Australia, Canada, and Mexico.
Despite these exemptions, US steel and aluminum prices rose by 2.4% and 1.6%, respectively, according to the U.S. International Trade Commission.
Last month, Trump directed his administration to consider imposing reciprocal tariffs on a country-by-country basis, arguing that the global trade system unfairly disadvantages the US.
The Commerce Department and US Trade Representative are expected to complete their studies by April 1, after which Trump could take further action.
At the February 26 cabinet meeting, Trump said he would announce sanctions on EU goods “very soon,” specifying that they would generally be 25% and apply to cars and other products.
In 2024, the U.S. had a $213 billion trade deficit with the EU, which Trump previously called “an atrocity.”
The impact of Trump’s tariffs
All Chinese goods valued over $800 are subject to a 10% tariff, while all steel imports worldwide face a 25% tax.
Economists warn that businesses selling imported goods may raise prices to offset these duties.
If tariffs on Mexican and Canadian imports proceed, products from those countries are also expected to become more expensive.
The auto industry could be particularly affected, as vehicle parts frequently cross US, Mexican, and Canadian borders before final assembly.
Tariffs on Canada and Mexico could drive up US car prices by as much as $12,000, according to a study by Anderson Economic Group.
The cost of building a crossover utility vehicle would rise by at least $4,000, with the increase tripling for an electric vehicle.
Other potentially impacted Mexican goods include fruit, vegetables, spirits, and beer. In Canada, prices for steel, timber, grains, and potatoes are likely to rise, while Canadian energy would be subject to a 10% tariff instead of 25%.
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