KANSAS CITY, MISSOURI, US — The Trump administration said the United States plans to impose tariffs of 25% on nearly all goods imported from Canada and Mexico. The tariffs are scheduled to go into effect on Tuesday, Feb. 4. 

The Canadian and Mexican governments said they plan to retaliate, with Canada initially imposing tariffs on $125 billion of US goods that will be phased in starting Feb. 4. US products facing tariffs during the first phase will include grain-based commodities like wheat, rye, barley, oats, canola and rice, as well as meat, poultry, eggs, dairy and other agricultural products.  

The Mexican government had yet to detail a specific list of US products subject to tariffs at press time, but the Wall Street Journal reported Sunday afternoon that the plan includes a focus on US goods from “Republican strongholds.” 

The United States also imposed an additional 10% tariff on imports from China. The Chinese government said it would take the case to the World Trade Organization. 

Using the International Emergency Economic Powers Act (IEEPA), President Trump declared a national emergency related to the flow of illicit opioids and other drugs into the United States, most notably fentanyl. The Act gives the president broad powers to act without input from Congress. 

A fact sheet published by the White House said the Trump administration was taking action to hold Canada, Mexico and China accountable for their promises of “halting illegal immigration” and “stopping poisonous fentanyl and other drugs” from flowing into the country. The fact sheet did not detail what each country can do to meet the expectations of the Trump administration and end the imposition of the tariffs. 

“The president is right to focus on major problems like our broken border and the scourge of fentanyl, but the imposition of tariffs under IEEPA is unprecedented, won’t solve these problems, and will only raise prices for American families and upend supply chains,” said John Murphy, senior vice president and head of international for the US Chamber of Commerce. “The chamber will consult with our members, including main street businesses across the country impacted by this move, to determine next steps to prevent economic harm to Americans. We will continue to work with Congress and the administration on solutions to address the fentanyl and border crisis.”    

While it is too early to know the exact impact on global grain trade, Trump’s tariffs on Chinese imports during his first term in office (2016-20) led to retaliatory tariffs by China that significantly reduced US grains and oilseeds exports to the world’s second most populous country. Since then, China has made Brazil its primary soybean and corn supplier. 

Canada is by far the largest exporter of wheat to the United States, which last year imported 92,000 tonnes from its northern neighbor, up from 65,000 tonnes the previous year, according to the Foreign Agricultural Service (FAS) of the US Department of Agriculture.  

Mexico accounts for nearly half of US corn exports, with an intake of 23.4 million tonnes in the 2023-24 marketing year worth an estimated $5 billion dollars, according to the FAS. Census data also showed that Mexico was the leading importer of US wheat last year, purchasing $937 million worth of the food grain from its northern neighbor. Mexico was the second largest importer of US wheat in 2024 ($2 billion), Census data showed.  

Although China has reduced its dependence on soybean imports from the United States in recent years, it still purchased an estimated $11 billion worth in 2024, the most by any country, according to Census data. Chinese wheat imports from the United States in 2024 were valued at $570 million, which ranked third. 

After Trump’s announcement, Chicago corn futures slid by nearly 2%, dropping to their lowest level in three weeks, while soybeans and wheat also declined.  

American Farm Bureau President Zippy Duvall expressed alarm about potential harm to US farmers resulting from the order.