Food and farming organizations have joined a long queue of industry groups urging the Trump administration to rethink blanket tariffs or exempt key products in a bid to limit damage to US consumers and “iconic American manufacturers.”
In an executive order issued Wednesday afternoon, President Trump announced:
- A 10% tariff on all countries (effective April 5).
- Reciprocal higher tariffs on countries with which the US has the largest trade deficits (effective April 9). Key trading partners subject to these customized tariffs include the EU (20%), China (34% – on top of the 20% tariffs already in place), Vietnam (46%), Thailand (36%), Japan (24%), Cambodia (49%), South Africa (30%), and Taiwan (32%). The rates are based on the monetary levies these nations charge on US imports plus non-monetary trade barriers such as regulations that the Trump administration claims make it tougher for American goods to enter those markets.
Goods not subject to reciprocal tariffs include steel, aluminum, cars and car parts already subject to Section 232 tariffs; copper, pharmaceuticals, semiconductors, and lumber; goods that may become subject to future Section 232 tariffs; bullion; energy; and certain minerals not available in the US.
- For Canada and Mexico, goods compliant with the US Mexico Canada Agreement (USMCA) will continue to see a 0% tariff, non-USMCA compliant goods will see a 25% tariff, and non-USMCA compliant energy and potash will see a 10% tariff.
The tariffs will “remain in effect until such a time as President Trump determines that the threat posed by the trade deficit and underlying nonreciprocal treatment is satisfied, resolved, or mitigated.”
President Trump also reserves the right to increase the tariffs “if trading partners retaliate” or decrease them if they “take significant steps to remedy non-reciprocal trade arrangements and align with the US on economic and national security matters.”
CBA: President should ‘fine tune’ its approach
In a statement issued shortly after the order was released, Tom Madrecki, VP supply chain resiliency at the Consumer Brands Association, encouraged the President to “fine-tune” his approach and “exempt key ingredients and inputs in order to protect manufacturing jobs and prevent unnecessary inflation.”
The consumer packaged goods (CPG) industry already manufactures most of its products in the US, noted Madrecki. However for “critical ingredients and inputs” that cannot be sourced domestically, he said, “No amount of tariffs will bring these inputs back to the US.
“However well intended, the success of the President’s America First Trade Policy must recognize the US companies that are already doing it the right way but depend on imports for specific ingredients and inputs that cannot be sourced domestically. Reciprocal tariffs that do not reflect ingredient and input availability concerns will inevitably raise costs, limit consumer access to affordable products and unintentionally harm iconic American manufacturers.”
Manufacturers: Tariffs ‘threaten investment, jobs, supply chains’
Jay Timmons, president and CEO at the National Association of Manufacturers, also urged the President to rethink his “complicated” approach as members “scramble” to determine how they will be impacted.
“The stakes for manufacturers could not be higher,” said Timmons in a statement issued this afternoon. “Many manufacturers in the US already operate with thin margins. The high costs of new tariffs threaten investment, jobs, supply chains and, in turn, America’s ability to outcompete other nations and lead as the preeminent manufacturing superpower.”
To drive the US economy, he argued, the administration should “minimize tariff costs for manufacturers that are investing and expanding in the US; ensure tariff-free access to critical inputs that manufacturers use to make things in America; and secure better terms for manufacturers by negotiating ‘zero-for-zero’ tariffs for American-made products in our trading partners’ markets—that means they don’t charge us, and we don’t charge them.”
The Association of Equipment Manufacturers, which includes ag equipment maker John Deere among its members, added: “We are concerned that reciprocal tariffs on our trading partners will hurt our industry and our customers.”
It also observed that manufacturers will not make strategic decisions about where to locate plants or source goods in an environment marred with uncertainty: “While we agree that the key to a strong US economy is building more products in America, we need certainty in the trade environment to make investments in domestic manufacturing.”
Retailers: ‘Reconsider before lasting damage is done to the economy’
Its comments were echoed by Michael Hanson, EVP, public affairs at the The Retail Industry Leaders Association, who claimed that blanket tariffs are “not a targeted attempt to protect American innovation or national security but will hit every family’s budget.
“These newly announced tariffs — and the expected retaliatory tariffs on American businesses — risk destabilizing the US economy, undermining the goals of bolstering domestic manufacturing and growth. Before lasting damage is done to the economy and family budgets, we urge the White House to reconsider its course.”
Produce assoc’n: Exempt fresh produce and florals
Cathy Burns, CEO at the International Fresh Produce Association, stressed that many fruits and vegetables either cannot be grown in the US at all, or cannot be grown here all year around, which means that tariffs will simply raise costs rather than drive domestic production.
“The imposition of tariffs increases costs, disrupts supply chains, and ultimately drives up grocery prices,” she said in a statement. “Fresh produce trade is uniquely complex, shaped by seasonal and regional factors that make a well-functioning market essential for year-round availability.
“Providing exemptions for fresh produce and florals, alongside regulatory reform and a secure agricultural workforce, is the best path forward to supporting American growers, businesses, and consumers.”
The National Restaurant Association added that, “Restaurant operators rely on a stable supply of fresh ingredients year-round to provide the menu items their customers want and expect. Many restaurant operators source as many domestic ingredients as they can, but it’s simply not possible for US farmers and ranchers to produce the volumes needed to support consumer demand.”
IDFA: Broad and prolonged tariffs will damage US dairy
Becky Rasdall Vargas, SVP trade and workforce policy at the International Dairy Foods Association, in turn warned that “broad and prolonged tariffs on our top trading partners and growing markets will risk undermining our investments, raising costs for American businesses and consumers, and creating uncertainty for American dairy farmers and rural communities.”
IATP: There are no winners in trade wars
At the Institute for Agriculture and Trade Policy, meanwhile, executive director Sophia Murphy claimed that farmers are still feeling the negative impacts of trade wars instituted during the first Trump administration.
“As they learned during the first Trump administration, farmers are particularly vulnerable to trade wars. Then, farmers saw soybean exports to China shrivel in response to the counter-tariffs China imposed in response to US tariffs on Chinese steel imports. Those counter-tariffs resulted in a 75% fall in US soy exports to China and prompted a federal bailout of $23 billion in public money for affected farmers. The lost markets have not been recovered.”
Midwest farms need to diversify away from corn and soybeans, she added. “But that is a strategy that needs time to implement, and transitional investment. The transition our food systems need will be all the harder if farmers start in a financial hole.”
NMPF/USDEC: ‘Tariffs a useful tool for negotiating fairer terms of trade’
In a joint statement, however, the National Milk Producers Federation and the US Dairy Export Council claimed that the tariffs were “a useful tool for negotiating fairer terms of trade.
“To that end, we are glad to see the administration focusing on long-time barriers to trade that the European Union and India have imposed on our exports. The administration has rightly noted both countries’ penchants for restricting sales of American products,” said NMPF president and CEO Gregg Doud.
“In fact, 20% reciprocal tariffs are a bargain for the EU considering the highly restrictive tariff and nontariff barriers the EU imposes on our dairy exporters. If Europe retaliates against the United States, we encourage the Administration to respond strongly by raising tariffs on European cheeses and butter. We also appreciate the President’s recognition of the sizable barriers facing US dairy exports into the Canadian market.”
He added: “Through productive negotiations, this administration can help achieve a level playing field for US dairy producers by tackling the numerous tariff and nontariff trade barriers that bog down our exports. As the administration moves forward with negotiations on these tariffs, we encourage prioritizing getting back to fully open trade with US.”
Further reading
Trade war 2.0: Strategies to navigate tariff whiplash – Rabobank
Trump’s tariffs won’t help US agrifood industry, says ex-Congressman Charlie Dent: ‘There are no winners’
Tariff whiplash: Uncertainty is driving inefficiencies in CPG supply chains, says consultant
From fertilizer to machinery, how might tariffs impact the agtech sector?
Navigating tariffs and trade in 2025: ‘There will be carnage’
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