Ag-State Republicans Express Concerns Over Tariffs
Republicans in Washington have spent weeks dismissing concerns about President Donald Trump’s tariffs or arguing they’re just a negotiating tactic. But now, with major tariffs kicking in on the country’s two largest trade partners, some are starting to publicly worry.
“I’m concerned,” Sen. Ron Johnson (R-Wis.) said of the 25 percent tariffs on Canada and Mexico that went into effect Tuesday after midnight. “I’m concerned.”
“Uneasy, I think, is a word,” said Sen. Jerry Moran (R-Kan.).
They and dozens of other GOP lawmakers represent states with major agriculture industries that are among the first targets of trade retaliation from Ottawa and Mexico City.
Impact on Agriculture Industry
The Canadian government has already disclosed more than $20 billion worth of U.S. goods it plans to slap with higher tariffs, including food products such as poultry, beef, fish, and yogurt. The fallout for ag producers, a traditionally conservative-leaning industry, will be severe.
The agriculture industry lost $26 billion from retaliatory tariffs in 2018 and 2019 — the first time Trump launched a trade war — according to the Agriculture Department, with soybean, sorghum, and pork producers facing the biggest losses.
While USDA stepped in with billions in direct payments to farmers to help them weather the fallout, that funding may be harder to access in Trump’s second term, as the administration seeks to cut federal spending.
Challenges and Concerns
USDA’s Commodity Credit Corp., the agency’s internal bank that the first Trump administration tapped to compensate farmers, is running low on funding. And it may be hard to sell Trump officials on a new infusion of cash for the fund at the same time they are slashing spending elsewhere.
“If you’re trying to shrink government, you certainly don’t want to enlarge the subsidies,” said former Trump trade official Ronald Baumgarten.
Confidence in Administration
Despite these challenges, a number of Republicans said they were confident the Trump administration would find a way to compensate farmers who lose money and market share from the newly launched trade wars.
“We’re going to keep our guys in the game,” said Sen. John Hoeven (R-N.D.), while acknowledging he was concerned about the short-term impact of the tariffs.
Future Prospects and Concerns
Trump on Monday appeared to acknowledge the rising fears in farm country, addressing “the Great Farmers of the United States,” in a post on his social media platform. According to the White House, Trump was referring to the reciprocal tariffs he plans to levy on countries around the world on April 2.
Agricultural exports have become an increasingly important revenue source for American farmers over the past 25 years, surging from $57.3 billion in 1998 to $174 billion in 2023, according to the Agriculture Department.
Conclusion
Concerns among farm-state Republicans over Trump’s new tariffs reflect a shift in rhetoric and a growing awareness of the challenges faced by agriculture industries. The impact of trade wars on farmers and the economy remains a topic of debate and concern among lawmakers.
