Farmers are freaked by Trump tariffs
Add Axios as your preferred source to
see more of our stories on Google.
Illustration: Shoshana Gordon/Axios
President Trump's tariffs on nearly every trading partner but Russia are rattling farmers across the country, especially in Illinois.
Why it matters: As the nation's third-biggest ag exporter — registering $13.7 billion in farm exports in 2023 — Illinois could lose a lot under new trade barriers.
Flashback: In the wake of the 2018-19 Trump tariffs, American farmers lost $27 billion in sales as China shifted its purchases from the Midwest to South America.
- Farmers say they had only recently rebuilt those market relationships.
What they're saying: "Increased tariffs threaten the economic sustainability of farmers who have lost money on most major crops for the past three years," said Zippy Duvall, president of American Farm Bureau Federation, in a Wednesday night statement.
- Duvall predicts retaliatory tariffs will hurt sales while raising costs on machinery and fertilizer, "a combination that not only threatens farmers' competitiveness in the short-term, but it may cause long-term damage by leading to losses in market share."
Meanwhile economists expect tariffs to boost the cost of produce by 4% and overall food by 2.8%.
The intrigue: Some of Trump's farm supporters assumed his threats were a bluff.
- "I think everybody was expecting that it was just a lot of talk to bring people to the table and work a few things out," farmer and Illinois Soybean Association official Brady Holst told Axios last month.
What we're watching: In 2019, Trump offered a $28 billion farm bailout to make up for losses, but one Midwest farmer told NPR he "wouldn't bet five cents" on another one given recent government cuts.