Tariff Clash Puts Arizona Farmers on Edge with Rising Costs

President Donald Trump’s tariffs targeting goods from major trading partners—Canada, Mexico, and China—took effect on Tuesday. However, by Wednesday, delays in implementation were announced, and by Thursday, Trump indicated that most of the 25% tariffs on Mexico and Canada would be postponed until April 2. In response, both China and Canada swiftly introduced retaliatory measures, including tariffs up to 25% on certain American exports.

Arizona’s agricultural community is preparing for significant financial strain as essential imports like fertilizers, pesticides, and machinery become increasingly costly. Additionally, the potential for higher taxes on exported goods looms over farmers. George Frisvold, a professor at the University of Arizona, warned that continued trade tensions could further decline U.S. farm income, diminishing the competitiveness of American agriculture on a global scale.

“If it stays that way, U.S. farm income is just getting lower,” Frisvold stated. “It’s going to make U.S. agriculture less competitive in world markets as costs rise.” During a congressional address on Tuesday, Trump asserted that the U.S. would begin taxing countries that he claimed have taken advantage of American economic policies. “Tariffs are about making America rich again,” he declared, acknowledging potential disturbances but expressing confidence in the overall strategy.

Initially set for early February, the tariffs faced delays after inquiries from major automakers seeking exemptions to avoid economic disadvantage. Consequently, Trump amended the agreements to excuse vehicle imports from Canada and Mexico for one month, while other tariffs remained in effect. By Thursday, he signed an executive order delaying broader tariffs imposed on these neighboring countries.

In Mexico, President Claudia Sheinbaum announced her government would unveil countermeasures by Sunday. Meanwhile, China proclaimed tariffs on a range of U.S. exports, with rates of 10% and 15% taking effect shortly after. The Chinese embassy’s message conveyed readiness for a protracted trade battle, reinforcing the tensions with the U.S.

Arizona farmers are now caught in the middle, grappling with the implications of these tariffs. The U.S. exports of agricultural machinery and commodities face increased taxes, complicating an already challenging economic landscape. Cassy England, a fourth-generation farmer from Sierra Farming, emphasized the impact of fluctuating cotton prices, critical to her livelihood. “Our cotton is mainly exported, and the price is already not in a good position,” she noted, raising concerns about the threats to their way of life.

Financial pressures mount on farmers from both sides as essential resources like fertilizers and equipment are forecasted to rise in price. Currently, approximately 90% of U.S. fertilizers are imported, primarily from Canada, which could lead to price increases of over $100 per ton due to the new tariffs. England expressed apprehension regarding fertilizer costs and machinery, anticipating that further increases would threaten budgets.

Frisvold highlighted that tariffs could lead to inflation and reduced farm income, ultimately eroding competitiveness. “When tariffs were imposed in the first Trump administration, virtually all the costs were passed on to U.S. consumers and businesses,” he explained, noting that farmers often operate on narrow profit margins, limiting their control over pricing.

The U.S. Department of Agriculture had originally projected an increase in farm profits for 2025, driven by government aid amid rising costs. Recent legislation, the American Relief Act, extended support programs aimed at assisting producers experiencing financial hardships, including $21 billion for disaster recovery and $10 billion for struggling operations.

However, these measures provide only temporary relief without addressing long-term sustainability or the threat of renewed trade wars. Trump turned to farmers on his social media platform, urging them to prepare for a surge in local agricultural production ahead of the impending tariffs set for April 2. He emphasized that retaliatory tariffs would be imposed in response to foreign levies, underscoring a tit-for-tat approach.

Historically, U.S. farmers have faced similar challenges during Trump’s previous term, where a trade war with China had widespread implications, particularly for agricultural sectors. Philip Bashaw, CEO of the Arizona Farm Bureau, acknowledged the substantial impact tariffs impose on farmers, stressing the need for fair trade while addressing heightened input costs due to their slim profit margins.

As uncertainty looms, Bashaw concluded with a note of optimism, expressing hope that the administration would mitigate potential disruptions while advocating for opportunities to enhance Arizona’s agricultural exports.