The Trump administration used tariffs to bring trading partners to the table to renegotiate trade agreements. The most notable of these were the tariffs on steel and aluminum. What is to become of these tariffs now that some trade agreements have been reached?
When we reached the United States-Mexico-Canada Agreement (USMCA), we assumed the tariffs would be lifted. However, this has not been the case. Farm Foundation commissioned a study by Perdue University to see what the remaining tariffs will do to the benefits of USMCA. Perdue Ag Economist Dominique van der Mensbrugghe says the agreement benefits are more than negated by the tariffs.
Mensbrugghe says the pork and poultry industries are going to feel the brunt of these tariffs remaining. This is not to say it will be much better for any other sector.
Iowa Senator Chuck Grassley has repeatedly called for the ending of the steel and aluminum tariffs against Canada and Mexico since the agreement of USMCA, saying they are no longer needed.
The Perdue study concluded the losses from the remaining steel and aluminum tariffs on USMCA partners, coupled with retaliatory tariffs from China, has cost nearly $8 Billion in Ag exports.