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.
