WATERTOWN, New York (WWNY) – What could a 25% tariff on Canadian and Mexican goods mean for north country farmers? Local experts weigh in.
On Monday, after President Donald Trump was sworn into office, he said in a news conference in the Oval Office that a 25% tariff on Mexican and Canadian goods coming into the U.S. could start February 1st.
If that happens, Canada has said it might retaliate and put a tax on goods coming into the U.S.
The potential trade war could affect the north country’s number-one private industry, agriculture.
“If we have the tariffs put in place, high tariffs coming from Canada and Mexico, it does have the potential to increase the demand for the local product and when you increase demand, prices go up,” said Jay Matteson, Jefferson County Agriculture Coordinator.
The tariff is essentially a tax on the product put in place by the government. Typically, that extra expense lands on the consumer.
Jefferson County farmer and Robbins Family Grain Manager Ron Robbins gets his canola meal and feed from Canada, and if the tariffs go through, and prices go up, he doesn’t think it will last long.
“Yes there will be some potential short-term pain, but I don’t think any of us, including myself are super worried about that right at the moment. Only because most of us understand that if anything does happen it will be short-lived,” Robbins said.
Robbins believes the United States economy is stronger than Canada and Mexico, which gives President Trump some leverage.
Both Matteson and Robbins said if the tariffs go through, it will level out the playing field between the three countries.
“All three countries know that we need to be good trade partners. Eventually, I think you would see all three countries improve the trade situation,” Matteson said.
The largest agricultural imports into the U.S. from Canada include meat, feed, and grains. Popular exports the U.S. sends to Canada include many dairy items.
