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Yakima Times

Friday, February 21, 2025

Potential impact of new US tariffs on agriculture industry amid fentanyl crisis

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Dan Newhouse U.S. House of Representatives from Washington's 4th district | Official U.S. House Headshot

Dan Newhouse U.S. House of Representatives from Washington's 4th district | Official U.S. House Headshot

The Trump Administration has taken steps to address the ongoing fentanyl crisis affecting communities across the United States. Efforts are being made to ensure that Canada, Mexico, and China fulfill their responsibilities in mitigating this issue. The administration's recent tariffs serve as a reminder of these nations' roles in addressing the crisis, which includes illicit drugs entering from Mexican cartels and security gaps at the northern border with Canada. Additionally, China is involved in manufacturing fentanyl precursors.

Currently, tariffs on Canada and Mexico are paused until March 4. However, there remains a significant threat of retaliatory tariffs that could impact much of the American agriculture industry. It is essential for Canada and Mexico to collaborate with the U.S. to halt fentanyl flow into the country so that these tariffs remain suspended or are completely removed. Furthermore, China must stop incentivizing precursor chemical production and cease supplying them to Mexican cartels.

"Free trade is critical to American consumers," an official stated, warning against retaliatory tariffs that might lead to another unnecessary trade war harming the economy.

Tariffs can be an effective tool when used correctly by ensuring a level playing field for exports and emphasizing the significance of American markets globally. A farmer from Washington’s Fourth District highlighted concerns over retaliatory tariffs impacting farmers and ranchers negatively.

In 2018, U.S.-imposed tariffs on various imports led trading partners like Canada, Mexico, China, India, and the European Union to retaliate. This response had severe repercussions on American agriculture with export losses exceeding $27 billion due to retaliatory tariffs ranging from two percent to 140 percent. Soybeans experienced substantial losses while pork, specialty crops, sorghum, and dairy also suffered significantly.

"A trade war with economic partners is the last thing our farmers and ranchers need," remarked a concerned individual about current challenges including high input costs and turbulent markets affecting farms nationwide.

While acknowledging efforts needed to stop fentanyl flow into America are vital; it's crucial that any actions taken do not further harm agricultural producers through retaliation by countries such as Canada or China.

Strategically applied tariffs can help maintain fair trading conditions but avoiding undue damage during negotiations remains paramount for protecting domestic agricultural interests.

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