By Andi Anderson
The Michigan Agri-Business Association (MABA) continues to receive inquiries regarding potential tariffs and their effects on Michigan’s agricultural industry. President Trump’s recent tariff announcement on April 2, 2025, set a baseline 10% tariff on imports, with higher duties for select countries. This change primarily impacts countries outside the USMCA framework, while Canada and Mexico remain largely unaffected by new tariff adjustments, except for certain sectors such as auto exports and steel.
For Michigan’s agricultural sector, the status quo remains for trade with Canada and Mexico, as the policies from last month continue to apply. Both countries, as USMCA partners, benefit from tariff exemptions for most agricultural goods, allowing Michigan farmers to maintain stable trade relations. Canada is Michigan's top agricultural export destination, and Mexico is the second. Tariffs or retaliatory measures could significantly impact Michigan’s agricultural economy by disrupting key export markets.
MABA’s position emphasizes the importance of open and expanded international markets, particularly with Canada and Mexico, for Michigan agriculture. The state’s role as a major trade and transit hub in North America makes these relationships vital. Michigan exports significant agricultural products to Canada, including crops and food products, while also relying on Canada for essential agricultural inputs like crop nutrients and feed ingredients. Disruptions in this trade could pave the way for international competitors to take advantage of the market gap.
For operational concerns regarding tariff compliance, MABA directs members to resources provided by U.S. Customs and Border Protection, which offer helpful guides for importers and exporters.
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Categories: Michigan, Business