Updated April 2, 2025 | 9:00 AM The Michigan Agri-Business Association continues to receive various inquiries from our members about potential tariffs. MABA is sharing regular updates as a service to our members and interested partners. This message primarily concerns potential tariffs on USMCA partners. Current Update on Tariffs – August 1 Ahead of an August 1 deadline, the Administration made a number of announcements of interest to MABA members. These follow on several weeks that have been marked by the announcement of several key trade framework agreements (for example with the EU, Japan, etc.) On July 31, an Executive Order from President Trump set higher import duty rates of 10% to 41% starting in seven days for around 70 nations. Some of these countries had reached tariff-reducing deals with the U.S. and others have not. The order includes an exemption for goods shipped during the next week. Goods from countries not listed in the order face a 10% rate. We encourage members to note the 7-day implementation window as it means there’s still a window for negotiations before these tariffs enter into effect. We assess there is a reasonable potential that additional framework agreements, changes to the tariff rates and so forth could be announced. Here is the July 31 order (lists tariff rates by country): https://www.whitehouse.gov/presidential-actions/2025/07/further-modifying-the-reciprocal-tariff-rates/ Here is one of many overview articles: https://www.politico.com/news/2025/07/31/trump-executive-order-higher-tariff-rates-00487913 Mexico Mexico is a key nation of interest to Michigan, which exports substantial amounts of food and agricultural products there. President Trump announced this week that he and Mexican President Sheinbaum arrived at a 90-day extension to continue trade negotiations. “We have agreed to extend, for a 90-day period, the exact same deal as we had for the last short period of time, namely, that Mexico will continue to pay a 25% fentanyl tariff, 25% tariff on cars, and 50% tariff on steel, aluminum, and copper. Additionally, Mexico has agreed to immediately terminate its non-tariff trade barriers, of which there were many,” he wrote. Canada Canada is Michigan agriculture’s number-one trading partner and trade with Canada is a top priority for our industry. The Administration announced July 31 a 35% tariff, up from 25% on non-USMCA compliant goods. The USMCA exemption remains for both Canada and Mexico, which is highly important. We continue to hear from members about concerns surrounding trade with Canada. Elimination of the USMCA exemption and/or out-of-control escalation of tariffs between the U.S. and Canada would be highly concerning for Michigan agriculture. MABA’s position on trade and tariffs: MABA and our members support the maintenance and expansion of international markets that are key for the agricultural industry. We echo the sentiments our national organization partners expressed to the White House on April 2. Tariffs (or resulting retaliatory measures) affecting agriculture and related industries, especially those potentially enacted against or by USMCA partners, will 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. Resources on Tariff Compliance Amid tariff discussion in recent weeks, some MABA members have asked operational questions about compliance with tariffs. U.S. Customs and Border Protection offers several introductory resources on this topic which may prove useful in the future: Tips for New Importers and Exporters: https://www.cbp.gov/trade/basic-import-export/importer-exporter-tips Introduction to the USCBP Import Process: https://www.cbp.gov/newsroom/video-gallery/video-library/introduction-cbp-import-process Basic Importing and Exporting Guide: https://www.cbp.gov/trade/basic-import-export Previous Updates – Please note the below information refers to news and information that is largely out of date. Refer to the top of this page for current information. Update – April 3 In summary, President Trump announced on April 2 that the U.S. will enact a baseline 10% tariff on all imports, and enact various higher duties on select countries. A chart of these tariffs can be found at this link. The White House issued a fact sheet on the President’s announcement, which is here. For Canada and Mexico, there are not major changes versus what was already enacted last month. The policies enacted last month remain in effect. In other words, goods from Mexico and Canada that comply with the USMCA trade agreement are largely exempt, except for auto exports and steel and aluminum which fall under separate tariff policies. Additional updates and resources were sent to MABA members on April 3. Refer to the AgFacts for more. Update – Monday, March 3 A story from the Associated Press on the Administration’s tariff plans can be found here. MABA continues to closely monitor trade actions, especially with regard to their impact on Canada and Mexico, major export markets for Michigan agriculture. The specific details of any policies that become effective will matter greatly. We were pleased in March to see action by the Trump Administration on March 6 that further delays tariffs on North American trading partners. We continue to speak with our members to learn about the impacts of tariffs, and potential tariffs on their operations. We continue to field member questions on this topic. Reach out to Chuck Lippstreu. 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) 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.
