The Impact of Tariffs on the U.S. Agriculture Industry
In 2025, new trade rules began to reshape the farming industry. The tariffs agriculture producers now face have made things more complex. Some costs are rising, and export plans are changing. But these shifts also highlight the need for stronger food systems at home. This article looks at how tariffs affect U.S. agriculture, and why local solutions are becoming more important.
Understanding the 2025 Tariff Landscape
The 2025 trade changes introduced new rules that affect how U.S. farms do business abroad. Global tariff hikes and temporary agreements have made agriculture more complicated than ever.
Let’s look closer at the key events, the countries involved, and how these barriers are reshaping trade.
A Brief Timeline of Recent Trade Measures
In 2025, several trade moves quickly reshaped the export landscape. On April 5, a 10% “Global Tariff” was set on all imports. Just days later, on April 9, higher tariffs—ranging from 11% to 50%—were placed on goods from 57 countries.
Then, on May 12, the U.S. and China agreed to a 90-day tariff truce. U.S. tariffs on Chinese products dropped from 145% to 30%, while China lowered its tariffs on U.S. goods from 125% to 10%.
These actions were carried out under the International Emergency Economic Powers Act (IEEPA). This act allows for quick changes in trade policy during global disruptions.
Key Countries Involved and Retaliatory Actions
In response to U.S. tariffs, China added up to 15% on soybeans, pork, and wheat. Canada targeted items like wine and fruit, while Mexico taxed U.S. pork and cheese. These agricultural tariffs landed hardest on U.S. farmers. They've slashed export demand and added new volatility to global markets.
The 90-Day U.S.-China Tariff Truce
On May 12, 2025, the U.S. and China agreed to a 90-day pause on new tariffs, giving both sides a chance to reset. As reported by Reuters, U.S. tariffs on Chinese goods dropped from 145% to 30%, while China lowered its tariffs on American products from 125% to 10%.
Though the move brought short-term relief, no long-term deal was made. Many industry leaders remain cautious, knowing that tensions could return once the truce ends (source).
How Tariffs Affect Agricultural Exports
Tariffs don't just raise costs—they also limit where and how U.S. farm goods can be sold. Key export markets like China, Mexico, and Canada have limited their purchases of American crops and livestock. In the next sections, we’ll explore what this means for trade, farmers, and the broader economy.
Market Access and Export Disruptions
In March 2025, China hit back with a 15% tariff on American soybeans and other key farm products. By May, the list grew, adding a 10% tariff on items like sorghum, pork, and dairy, and 15% on corn, wheat, and chicken. These new tariffs led to canceled export orders and major slowdowns in shipping.
About $21 billion in U.S. corn and soybean exports are now at risk. China alone was buying $12.8 billion in soybeans in 2024, while Mexico bought $5.6 billion in U.S. corn. Farmers are still unsure if those markets will return anytime soon.
The Role of China, Mexico, and Canada in U.S. Exports
In 2024, China was the largest buyer of U.S. soybeans, purchasing $12.8 billion worth. Mexico led in corn imports, totaling $5.6 billion. Canada remained a steady partner, importing various agricultural products from the U.S.
These countries play a major role in U.S. farm exports. As tariffs shift trade patterns, the flow of goods to these markets may change. For many producers, these shifts have added new variables to how and where they sell.
Corn Prices Over Time (2015-2025)
Financial Impact on Regional Producers
California’s Central Valley grows many perishable crops like almonds and oranges. This area sells over $20 billion in farm goods each year. However, new tariffs from China and Canada have made it harder to move these goods. Some local farmers say contracts were canceled, and they’re worried about future sales.
The USDA also reported a major pork order canceled by China—12,000 tons in total. For producers of fresh goods, every small change in trade makes an impact.
Rising Costs for Farmers and Agricultural Businesses
The tariffs agriculture producers face aren’t just about trade. They also raise the cost of doing business. Prices are climbing for everything from fertilizers to tractors. The next sections will cover how these rising costs are affecting farms across the country.
| Year | DAP Price | MAP Price | Urea Price | Potash Price | Anhydrous Ammonia Price | Average Price |
|---|---|---|---|---|---|---|
| 2015 | $536 | $553 | $393 | $414 | $650 | $509 |
| 2016 | $418 | $451 | $327 | $312 | $470 | $396 |
| 2017 | $425 | $460 | $305 | $318 | $509 | $403 |
| 2018 | $389 | $396 | $367 | $376 | $487 | $403 |
| 2019 | $307 | $324 | $273 | $283 | $273 | $292 |
| 2020 | $438 | $446 | $363 | $376 | $487 | $422 |
| 2021 | $243 | $240 | $159 | $205 | $160 | $201 |
| 2022 | $1,200 | $1,300 | $1,000 | $800 | $1,600 | $1,180 |
| 2023 | $550 | $560 | $485 | $459 | $685 | $548 |
| 2024 | $738 | $808 | $490 | $444 | $735 | $643 |
| 2025 | $738 | $808 | $490 | $444 | $735 | $643 |
Increased Prices on Fertilizers and Imports
In 2025, a 25% tariff was placed on fertilizer imports from Canada, including potash, ammonium sulfate, and nitrogen. Since the U.S. relies on Canada for most of its potash, these changes hit hard. Reports show some prices have jumped by over $100 per ton.
Fertilizer is a core import for growing food. When prices rise, it affects every part of the food system—from planting to harvest to grocery store shelves.
Related article: Hydroponic Produce: The Eco-Friendly Answer to Modern Agriculture .
Curious how growers can reduce input costs while staying sustainable? Learn how hydroponic farming uses fewer resources—and why it may be part of the solution.
Farm Equipment and Technology Challenges
Tariffs have also raised costs for tractors, harvesters, and other essential farm machines. In February 2025, China added a 10% tariff on U.S. farm equipment. This change affected companies like Deere & Co. and CNH, making their products more expensive overseas.
At the same time, U.S. tariffs on steel and parts from China and Mexico have made it more costly to build and repair farm equipment at home. According to the Association of Equipment Manufacturers, these rising costs are adding strain to an already tight farming economy.
AgTech Innovation Under Pressure
For agtech startups, tariffs have made it harder to grow. Many rely on imported parts like microchips and batteries. These new tariffs make those components cost more and take longer to arrive.
These delays raise the cost of research and development, slowing down progress. Some companies are now shifting production closer to home to avoid future disruptions.
Supply Chain Disruptions and Operational Strain
Tariffs have also changed how farm goods move. Delays, cancellations, and added fees are straining how producers ship and store products. Next, we’ll explore how these disruptions are playing out across the supply chain.
Order Cancellations and Transportation Delays
Tariffs have caused major shipping issues for U.S. farm exports. One exporter had 6,400 metric tons of wood pulp put on hold, along with 15 railcars. These delays caused that exporter to add expensive demurrage fees.
In another case, 9,000 metric tons of goods were already headed to China. But with uncertain port rules, buyers might refuse the cargo, leaving it stranded or redirected elsewhere. These kinds of disruptions add stress across the supply chain.
Infrastructure and Investment Concerns
With rising costs and trade uncertainty, many farmers are holding off on big investments. Equipment upgrades and expansion plans are being delayed.
Lower commodity prices make it harder to justify spending, and in some areas, credit has become harder to access. Together, these factors are slowing growth and making it tough for farms to plan ahead.
Long-Term Outlook and Industry Response
Agricultural tariffs continue to shape how farmers plan for the future. Some are looking for short-term fixes, while others are rethinking their whole approach to production and trade. The next sections explore how the industry is responding, and what could come next.
Short-Term Relief, Long-Term Uncertainty
The 90-day tariff truce between the U.S. and China has given farmers a short break. Under the deal, the U.S. paused a 34% tariff and kept a 10% rate in place. While this has helped ease pressure, it’s only temporary.
Reactions across the industry are mixed. Some producers are cautiously optimistic, while others worry that full tariffs could return, causing more issues. Planning ahead is still the biggest challenge.
Shifting Toward Domestic Solutions
As trade becomes less steady, more retailers and farmers are considering local options. U.S.-based food systems are getting more attention, especially those that don’t rely on long shipping routes.
Controlled environment farming, like greenhouses and indoor farms, is growing in popularity. These systems can grow food all year and stay stable during global changes. Eden Green is helping lead this change by offering fresh, local produce that’s ready when people need it.
Related article: 10 Benefits of Hydroponics & Its Impact on Agriculture .
Want to see how hydroponics helps? Learn how this method saves water, grows faster, and works in any season.
Why Local Farming Partnerships Matter Now More Than Ever
Global trade can be unpredictable. That’s why more companies are turning to local farms. Working with nearby growers helps keep food supply steady and products fresh with shipping costs.
For food service, local partnerships give you more control, meaning fewer roadblocks along the way. These partnerships ensure food gets where it’s needed, and fast.
How Eden Green Can Be Part of the Solution
As the farming world looks for new answers, Eden Green offers a stable, local option. With advanced greenhouses and year-round growing, we help reduce the risks that come with global trade. Read on to discover how we support a stronger, more reliable food system.
Supporting Local Food Systems
Eden Green’s farming model is built for consistency. Our hydroponic greenhouses grow fresh produce year-round, no matter the season. Because we grow close to where food is sold, products don’t travel far, meaning better quality and less waste.
Retailers and food service partners benefit from this steady supply of hydroponic produce that’s fresh, local, and ready when they need it. In a time when stability matters most, a sustainable farming model is more important than ever.
Resilience Through Controlled Environment Agriculture
Controlled environment agriculture (CEA) is designed to handle change. Greenhouse and vertical farms aren’t tied to weather or imports, so they stay steady when outside markets shift.
CEA also uses less water, takes up less land, and can be scaled to meet demand. These features make it strong and flexible enough to face the future of farming.
Learn how Eden Green’s CEA model brings stability and efficiency to modern food systems.
Related article: Texas and Mexico Water Crisis: Impact on South Texas Agriculture .
Wondering how hydroponics stacks up to traditional farming? This article breaks it all down—from yields to resource use.
A Call to Collaborate for a More Stable Agricultural Future
At Eden Green, we believe strong partnerships are key to building a better food system. We invite retailers, food service providers, and community leaders to explore how partnership can create a stable, local supply chain.
Partnering with us means fewer delays, more control, and fresh produce grown close to where it’s needed. It’s more than a business decision—it’s a step toward a self-sufficient, reliable food economy.
FAQs
What are the agricultural trade barriers?
Agricultural trade barriers include tariffs, quotas, and regulations that limit or slow down farm exports to other countries.
How do tariffs affect corn prices?
Tariffs can reduce export demand, which may push corn prices down, especially when supply remains high.
Will tariffs affect fertilizer prices?
Yes. Tariffs can raise the cost of fertilizers, which makes it more expensive for farmers to grow crops.
How do tariffs impact producers?
Tariffs can increase costs, reduce export demand, and create uncertainty, making it harder for producers to plan and invest.
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