Pause on tariffs is a welcome announcement

On April 9, the Trump administration announced a 90-day suspension of additional tariffs beyond the “base” 10 percent tariff applicable to all identified countries with the exception of China, where tariffs actually increased. 

During a White House press conference on April 15, White House Press Secretary Karoline Leavitt notes the administration has been presented with offers from at least 15 nations for trade deals following President Donald J. Trump’s announcement late last week of a 90-day pause on reciprocal tariffs. 

“As we’ve said consistently, more than 75 countries have reached out,” Leavitt explains. “So, there’s a lot of work to do. We very much understand that, but we also believe we can announce some deals very soon.”

According to U.S. Treasury Secretary Scott Bessent, Trump’s decision to pause most tariffs came after numerous countries reached out to the White House trying to negotiate a better trade agreement after Trump announced sweeping tariffs in early April.

However, Trump increased tariffs on China to 125 percent. The additional tariffs were imposed after China announced 50 percent retaliatory duties on U.S. imports.

White House officials confirmed the 125 percent tariffs would go on top of 20 percent duties applied in February, putting total tariffs on Chinese imports at 145 percent.

What does this mean for the ag industry?

While some industries were exempt from increasing tariffs due to their important roles in the economy, others including copper, lumber, pharmaceuticals and semiconductors were excluded.

In an April 4 American Farm Bureau Federation (AFBF) article, Former American Farm Bureau Foundation for Agriculture Economist Betty Resnick states, “For the agricultural industry, there are a few exemptions impacting inputs, including veterinary vaccines and all pharmaceuticals for humans; several pesticide ingredients under HS 2399; fertilizers containing potash; peat; lubricating oils and greases and other energy products.”

According to Tax Foundation reports, the tariffs applied in 2025 will result in an average tax increase of more than $1,900 for every U.S. household annually. If correct, this would be the largest tax hike in 43 years, if negotiations were not initiated and resolved quickly.

“Longer-term, farmers may also see demand reduction as our economy struggles to cope with these major changes,” Resnick adds. “Farmers and ranchers suffer from instability, as their soundest business decisions can be turned upside down, but if these tariffs rapidly lead to new agreements with new market access, they may help our farmers.”

 In the meantime, without direct support from USDA or a farm bill with an updated safety net, farmers will almost certainly bear the brunt of these tariffs, she mentions.

In a April 9 Farm Journal article by Matthew Grassi, Association of Equipment Manufacturers Senior Vice President of Government and Industry Relations Johan “Kip” Eideberg  states, “We support what the president is trying to do. He wants to strengthen manufacturing and bolster our global competitiveness, and we agree with it.”

Eideberg adds, “But this is a global industry, and we rely on critical inputs which can only be sourced at scale from suppliers around the world. When the cost of those inputs goes up, the cost of building new equipment here in the U.S. will also go up. This concerns us, and it concerns our farmers and ranchers.”

Eideberg mentions the association is keeping a close watch on what’s happening in Washington, D.C. and pushing hard for a new farm bill. 

“We’re hoping farmers will stand shoulder to shoulder with us and deliver the same message to Congress. We know Trump cares deeply about our farmers, and we have to get a farm bill done so we can get on with our business of feeding the world,” he states.

Voicing support

Showing support for the pause on tariffs was AFBF President Zippy Duvall, who released a statement on the organization’s website.

Duvall says, “AFBF appreciates Trump’s decision to pause the reciprocal tariffs on dozens of America’s trading partners for 90 days.”

According to Duvall, AFBF has been engaging directly with the White House, U.S. Trade Representative and U.S. Department of Agriculture to emphasize the toll tariffs will take on America’s farmers and ranchers, who are already strapped because of high supply costs and shrinking paychecks. 

“Creating more market challenges puts at risk more than 20 percent of U.S. farm income. We’re encouraged those concerns are being heard,” he adds. “While the pause brings some temporary certainty, questions remain about the long-term competitiveness for farmers in the global marketplace. We encourage the administration to swiftly resolve trade disputes and to pursue strategies to ensure America’s farmers can continue to stock the pantries of families here at home and abroad.”

Following Duvall’s sentiments was National Corn Growers Association President Kenneth Hartman, Jr. who states, “We appreciate the administration’s decision to place a 90-day pause on the reciprocal tariffs it had put in place earlier this week. We ask Trump and his administration to use this delay to negotiate market access opportunities for American-made products, including corn.”

With the news of a time-out placed on tariffs, AGCO announced they will continue to ship finished products from the U.S. to other countries where there are currently no applicable tariffs. 

“Following decisions to temporarily pause U.S. and other reciprocal tariffs, AGCO is resuming shipment of certain products into the U.S. from most global locations. Evaluation continues on all actions as we prioritize serving our farmers and dealers while minimizing tariff impact,” AGCO’s April 10 press release states.

Melissa Anderson is the editor of the Wyoming Livestock Roundup. Send comments on this article to roundup@wylr.net.