Ideas & Opiniones / Global Agro

Food & Ag Groups Criticize ‘Destabilizing’ Tariffs and Demand Exemptions: ‘We Urge the White House to Reconsider’

Industry leaders warn that new tariffs could harm American farmers, businesses, and consumers

Food & Ag Groups Criticize ‘Destabilizing’ Tariffs and Demand Exemptions: ‘We Urge the White House to Reconsider’
jueves 03 de abril de 2025

By Agroempresario.com

Food and agricultural organizations are joining a growing coalition of industry groups urging the Trump administration to reconsider its recently announced tariffs. These groups argue that the blanket imposition of tariffs, without exemptions for key products, could significantly impact American consumers and businesses, including major agricultural producers and food manufacturers.

A Wave of New Tariffs Shocks the Industry

On Wednesday afternoon, President Trump issued an executive order imposing a 10% tariff on all imports, effective April 5. Additionally, reciprocal higher tariffs will be applied to certain trading partners with which the United States has the largest trade deficits, effective April 9. These include:

  • European Union (EU): 20%
  • China: 34% (on top of the existing 20%)
  • Vietnam: 46%
  • Thailand: 36%
  • Japan: 24%
  • Cambodia: 49%
  • South Africa: 30%
  • Taiwan: 32%

Exemptions were granted for certain goods such as steel, aluminum, pharmaceuticals, semiconductors, and lumber. However, essential agricultural and food products remain subject to these tariffs, raising concerns about supply chain disruptions and increased costs for American businesses and consumers.

Industry Reactions: Fear of Economic Damage

Several key industry organizations have voiced concerns over the tariffs’ potential negative effects on investment, job creation, and consumer prices.

Consumer Brands Association Calls for ‘Fine-Tuned’ Approach

Tom Madrecki, Vice President of Supply Chain Resiliency at the Consumer Brands Association (CBA), emphasized that the administration should refine its strategy to exempt critical ingredients and inputs.

“The consumer packaged goods (CPG) industry already manufactures most of its products in the U.S. However, for ingredients and inputs that cannot be sourced domestically, no amount of tariffs will bring these inputs back to the U.S.,” said Madrecki. “These tariffs will inevitably raise costs, limit consumer access to affordable products, and unintentionally harm iconic American manufacturers.”

Manufacturers Sound the Alarm

Jay Timmons, President and CEO of the National Association of Manufacturers, warned that the tariffs threaten investment and supply chains.

“The stakes for manufacturers could not be higher,” said Timmons. “The high costs of new tariffs threaten America’s ability to remain a leading manufacturing superpower.”

The Association of Equipment Manufacturers, which represents companies like John Deere, also expressed concerns that these tariffs would harm agricultural equipment manufacturers and farmers alike.

Retail and Agriculture Groups Demand Exemptions

Retail Industry Warns of Inflation and Economic Destabilization

Michael Hanson, Executive Vice President of Public Affairs at the Retail Industry Leaders Association, stated that the tariffs are not targeted and could lead to economic instability.

“These tariffs—and the retaliatory tariffs that are sure to follow—risk destabilizing the U.S. economy, undermining domestic manufacturing, and making everyday products more expensive for American families,” Hanson said.

Fresh Produce and Dairy Sectors Seek Special Considerations

Cathy Burns, CEO of the International Fresh Produce Association, urged the government to exempt fresh produce and florals from the tariffs.

“The imposition of tariffs increases costs, disrupts supply chains, and ultimately drives up grocery prices,” Burns explained. “Many fruits and vegetables cannot be grown in the U.S. year-round, making imports essential.”

Similarly, Becky Rasdall Vargas, Senior Vice President of Trade and Workforce Policy at the International Dairy Foods Association, stated that broad tariffs on key trading partners could undermine investments in the U.S. dairy sector.

Farmers Recall the Harm from Previous Trade Wars

Sophia Murphy, Executive Director of the Institute for Agriculture and Trade Policy, noted that farmers are still recovering from the negative impacts of previous trade wars initiated during the first Trump administration.

“Farmers saw soybean exports to China shrink in response to retaliatory tariffs. That led to a 75% drop in U.S. soy exports to China and a $23 billion bailout for affected farmers,” Murphy said. “We cannot afford another round of trade conflicts.”

Dairy Industry Divided on the Tariffs

While many food and agriculture groups oppose the new tariffs, the National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) argue that they could serve as leverage to negotiate fairer trade terms.

NMPF President and CEO Gregg Doud stated, “The administration has rightly focused on long-time trade barriers imposed by the European Union and India. We encourage the government to respond strongly to any European retaliation by raising tariffs on European cheeses and butter.”

What’s Next? Industry Calls for Immediate Revisions

Despite the White House’s claims that the tariffs will remain in place until the trade deficit issue is resolved, food and agricultural industry leaders continue to call for revisions and exemptions. Many argue that targeted trade negotiations, rather than sweeping tariffs, would be a better approach to securing fairer trade agreements without harming American businesses.

With growing opposition from multiple sectors, the administration may face increasing pressure to reconsider its approach. Whether the White House will adjust the tariff policy in response to these concerns remains to be seen.



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