Pennsylvania farmers brace for Trump tariffs
Add Axios as your preferred source to
see more of our stories on Google.
A Brown Swiss calf at Way-Har Farms in Upper Tulpehocken Township in 2020. Photo: Ben Hasty/MediaNews Group/Reading Eagle via Getty Images
U.S. farmers are feeling the pressure as President Trump's new tariffs on Mexico, Canada and China trigger retaliation, leaving many worried about their livelihoods.
Why it matters: Escalating trade tensions could have serious economic consequences for farmers and rural communities throughout the country, including in Pennsylvania.
Driving the news: Gov. Josh Shapiro said in Pittsburgh on Wednesday that Pennsylvania's large dairy industry will suffer because of Trump's tariffs.
- He noted that Western Pennsylvania dairy farms sell a lot of product to Mexico: "Our dairy farmers export more dairy to Mexico than any other country. They're about to have markets shut off to them because of this ridiculous trade war that the president started with our two closest allies. Our farmers are going to suffer."
Catch up quick: The Trump administration imposed 25% tariffs on goods from Mexico and Canada and an additional 10% on goods from China. Canada and China swiftly announced retaliatory taxes.
- Trump agreed to a one-month delay on tariffs for certain U.S. automakers on Wednesday.
The big picture: The tariffs could hurt farmers as spring planting begins, too, as most U.S. potash fertilizer is imported from Canada.
- "We are already facing significant economic uncertainty, and these actions only add to the strain," said National Farmers Union president Rob Larew.
By the numbers: Pennsylvania is the nation's 23rd-largest agricultural exporter. It shipped $2.6 billion in ag products abroad in 2022, according to the USDA.
- The state's agricultural exports include dairy, corn, soybeans, feeds, grain and other plant products.
- There are nearly 5,000 dairy farms in Pennsylvania — the second-most of any state in the nation — and the dairy industry contributes almost $12 billion to the state's economy annually, according to the Center for Dairy Excellence.
- Agriculture adds nearly $133 billion to the state's yearly economy and supports more than 593,000 jobs, the state Department of Agriculture says.
Flashback: China's share of U.S. soybean exports fell from 62% in 2016 to 18% during Trump's 2018 trade war with China, which increasingly turned to Brazil for its soybeans.
Zoom out: The tariffs could have a $5.3 billion combined impact on Pennsylvania, according to a recent Axios estimate.
The other side: In a statement, the White House said the tariffs would "combat the extraordinary threat to U.S. national security, including our public health, posed by unchecked drug trafficking."
- Trump says the tariffs aim to crack down on undocumented immigration and fentanyl crossing the border.
What they're saying: "Starting a trading war with our allies makes no sense," Shapiro said. "It makes America weaker. It is not strategic, but it drives up the cost of the goods that we need to see coming down. People want costs to come down."
- "For the third straight year, farmers are losing money on almost every major crop planted," said American Farm Bureau Federation president Zippy Duvall, noting the economic headwinds already facing U.S. farmers.
- "Adding even more costs and reducing markets for American agricultural goods could create an economic burden some farmers may not be able to bear," he said.