Updated February 5, 2025 | 7:00 AM
The Michigan Agri-Business Association has received inquiries from our members about the Trump Administration’s stated intent to enact tariffs on Canada and Mexico.
MABA is sharing the below update as a service to our members and interested partners. This message primarily concerns potential tariffs on USMCA partners.
Update – Wednesday, February 5
MABA continues to field a high number of calls about tariffs, especially the potential for tariffs on Canada and Mexico, and we were glad to see agreements that paused potential North American tariffs for 30 days.
MABA has continued to emphasize our shared goals with the Trump Administration related to border security, especially a more secure U.S.-Mexico border, as well as our concern about the possible economic impacts of tariffs. You can read some of the media stories where we have weighed in here:
WZZM (West Michigan): Experts weigh in on how tariffs could impact Michigan
Successful Farming: Michigan Braces for Fallout as Trump Tariffs Target State’s Top 3 Trading Partners
Brownfield: Border ag state braces for trade impacts
Update – Monday February 3
On Monday, February 3, an agreement was reached that delays tariffs on Mexico and Canada for at least 30 days. The previously announced 10% tariff on products from China was enacted Tuesday, February 4. Canada and Mexico made announcements related to border security, including 10,000 Mexican National Guard troops to be deployed to the U.S.-Mexico Border. MABA has continued to emphasize our shared goals with the Trump Administration related to border security, especially a more secure U.S.-Mexico border, as well as our concern about the possible economic impacts of tariffs.
Here are some further comments made by MABA on Monday, February 3:
Border Ag State Braces for Trade Impacts (Brownfield)
How Pending Tariffs Would Affect Michigan Ag (Michigan Farm News)
Previous Updates
On Saturday, February 1, the president enacted across-the-board 25% tariffs on Canada and Mexico, save for a 10% duty on Canadian oil and energy, and a 10% tariff on imports from China. Tariff collections are slated to begin at 12:01 AM on Tuesday. Import products loaded on their final mode of transit by 12:01 AM yesterday (Saturday) will not be subject to the duties per Section 2(a) here.
Agricultural organizations continue to work to obtain additional detail, and we anticipate this will be an evolving topic. Yesterday’s action is a key development.
A statement issued by MABA on February 1 can be viewed here.
We encourage members to continue to communicate on a proactive basis with cross-border customers and suppliers to plan and account for the potential of new tariffs, to the extent practicable.
It is notable that the Administration has tasked several U.S. Government departments with reporting on a range of trade-related issues no later than April 1; such reports could impact tariffs and other tax and trade policy. More information is contained in President Trump’s January 20, 2025 Memorandum, America First Trade Policy.
MABA appreciates the Trump Administration’s overall efforts to ensure border security and safeguard American economic interests. President Trump has historically used tariffs as a tool toward achieving a broad range of policy aims.
We continue to caution that tariffs affecting agriculture and related industries, especially those potentially enacted against USMCA partners, would have substantial economic consequences here in Michigan.
As a border state and major North American trade and transit hub, Michigan deeply values our strong two-way trading relationship with Canada. Michigan is a top agricultural exporter to Canada, our #1 export destination for agricultural and food product exports. Michigan also relies on open trade with Canada for key inbound products, including crop nutrients, feed ingredients and beyond.
Mexico is Michigan agriculture’s #2 export destination and key agricultural industries in Michigan have forged lasting, long-term commercial ties in Mexico. Retaliation could disrupt current and future market opportunities and open the door to international competitors.
We will continue to share information with member companies as news develops on this topic. For more information or with questions, contact Chuck Lippstreu with the Michigan Agri-Business Association.
LANSING, Mich. (Feb. 1, 2025) – Michigan Agri-Business Association President Chuck Lippstreu issued the following statement on new tariffs imposed Saturday against Canada and Mexico:
“As a border state, leading agricultural exporter, and major North American trade and transit hub, Michigan deeply values our strong, long-term commercial relationships with Canada and Mexico. We are deeply concerned that across-the-board tariffs risk substantial negative economic consequences for Michigan agriculture and rural communities in our state.”
For use on background, attributable to the Michigan Agri-Business Association:
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About the Michigan Agri-Business Association (MABA): Based in Lansing, Michigan, the Michigan Agri-Business Association represents nearly 300 companies and organizations involved in the agricultural and food production value chain. These include rural farm supply businesses, crop input manufacturers, logistics providers, utility companies, professional service providers and beyond. Learn more at www.miagbiz.org.
LANSING, Mich. – MIchigan farming and agribusiness organizations Monday reiterated their call for action to address the negative consequences of impending Earned Sick Time Act (ESTA) changes for family farms and rural employers.
A letter sent to the Michigan Senate from the organizations spotlighted bipartisan approval of HB 4001 and HB 4002, and called for Senate action as soon as possible.
“It is important to understand that rural, Main Street businesses and Michigan farms will be among the many other sectors of Michigan’s economy harmed if the Legislature allows these changes to enter into force as written,” the groups wrote to Senators.
The letter can be viewed online here.
With no further action from the Legislature, an array of changes to the ESTA take effect next month. These changes will greatly reduce employers’ options for offering paid leave to employees, creating a “one size fits all” approach. It contains no exemptions for even the smallest employers; no flexibility for seasonal and temporary workers often employed part-time at rural businesses; and no recognition of the unique factors, such as animal care and crop movement logistics, that impact agricultural businesses.
“Rural businesses compete intensely to attract, hire and retain workers through existing competitive benefits and compensation packages, and upcoming ESTA changes will hamstring those efforts,” said Chuck Lippstreu, President of the Michigan Agri-Business Association. “Michigan’s rural employers were heartened to see the Michigan House act on legislation to deliver relief, and they echo the calls coming from every corner of our state’s economy for legislators to make common-sense changes to this policy before it takes effect.”
“Michigan farms are proud to lead the way in delivering jobs and economic opportunity in rural communities across Michigan, and we are deeply concerned this new policy will harm both employers and employees,” said Rob Anderson, Manager of State Government Relations for the Michigan Farm Bureau. “We thank the House for delivering common-sense action, and now we need the Senate to follow suit. We are counting on leaders in Lansing to helpensure that when these changes go into effect, rural employers and employees retain appropriate flexibility, strong compensation packages and the ability to keep growing the rural economy.”
The letter echoes calls from other sectors for common-sense legislative action that restores certainty and a workable framework for businesses, prior to the ESTA changes entering into effect. The farming and rural business groups asked that the Michigan Legislature make the following changes:
The agricultural organizations noted their letter adds to calls from many other sectors of Michigan’s economy for legislators to act on this important issue, as it will impact businesses in virtually every corner of our state.
The Michigan Agri-Business Association (MABA) and North Dakota Grain Inspection (NDGI) today announced an expanded program of three grain evaluation seminars across Michigan in April 2025.
The seminars add to training programs NDGI has provided for MABA and its member companies for several years. This year’s program triples the opportunities for Michigan grain graders to attend training seminars.
Seminars have been scheduled across Michigan on the following dates. All seminars will take place from 10:00 AM – 3:00 PM and cover guidelines for the evaluation of corn, wheat and soybeans. Registration includes lunch.
Go here to register for any of these three sessions!
“Rising attendance at grain evaluation trainings in recent years showcases Michigan grain handlers’ commitment to delivering world-class services for farmers and all those on the grain value chain,” said MABA President Chuck Lippstreu. “The expert trainers at NDGI provide extremely helpful information, and we are excited to work with them to provide the industry with additional training opportunities this spring.”
“Having opened a Michigan office in 2024, NDGI is proud to assist grain handlers across many parts of Michigan,” said NDGI Vice President Kia Mikesh. “These seminars provide an important opportunity for grain company employees to review important grain evaluation skills that will serve them well throughout the year.”
Questions can be directed to the Michigan Agri-Business Association at maba@miagbiz.org or visit http://maba.swoogo.com/2025graingrading.
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