Many California farmers, which generate the largest share of U.S. food, feared the move could damage their businesses after President Trump imposed heavy tariffs on the country’s three largest trading partners.
The state’s rich and fertile site is a major global supplier of agricultural products, and its farmers could be hit hard by retaliation from Canada, Mexico and China and through the expropriation of exports to the United States. Farmers also rely heavily on Canadian fertilizers, which may be costlier as tariffs are restricted.
“I’m very worried that it will affect the entire tomato industry,” said Bruce Rominger, who grows tomatoes and other produce on a farm in the Sacramento Valley.
Mexico and Canada are the two largest customers of Rome Tomato, and at the end of each summer, the Central Valley bursts up and down and then canned. Farmers are worried that processors exporting canned tomatoes will face sharp retaliatory tariffs that will drive lower demand in these countries or lower prices to growers.
The Trump administration imposed a 25% tariff on Canadian and Mexican products and a 10% tariff on China.
Canada quickly announced a series of tariffs on U.S. import retaliation. China responded Announced 15% tariff Among many American produce, including cotton, it occupied thousands of acres in the San Joaquin Valley. Mexico said it will elaborate on its tariffs on Sunday.
“Yes, he can do damage to the Canadian economy,” the Canadian Prime Minister said. Justin Trudeau in a speech Tuesday “But he will discover quickly because American families will discover quickly, which will hurt people on both sides of the border.”
The tariffs hit tariffs when California farmers were already worried that the efforts of Trump’s promised mass deportations during the campaign might shock people. According to the study, since California has half of its farmers who are undocumented. Earlier this year, the Trump administration also confuses farmers Sudden release of irrigation Water in the water of the two dams before the winter weekend – not when farmers need or want water. The central valley has further attracted attention and plans to open fire and cut at the reclamation bureau of the reclamation bureau, which operates the key to the water infrastructure for the heart of the agriculture sector.
Still, many farmers support Trump with a lot of profit in the 2024 election, and they are reluctant to speak publicly about their concerns for being seen as criticizing him or because they hope the administration can protect farmers as they did in the past.
“It’s not an easy time [farmers]Daniel Payares-Montoya, a research assistant at the California Institute of Public Policy. “They are under greater pressure than before.”
From an economic standpoint, trade should add pie to everyone, but politics creates a lot of uncertainty.
The long and flat fields of the Central Valley are tucked between California’s coastal mountains and Sierra Nevada, and may be far away from world affairs. But farmers across the state have been paying close attention – and fearing.
California Agriculture President Shannon Douglass pointed out in a statement that the state’s agriculture has been hurt by past trade wars. A study showed that China’s retaliatory tariffs hit almond growers, especially hard growers, with prices lowered from $2.50 to $1.40 per pound in the last Trump administration.
California farmers exported more than $22 billion worth of food in 2021, with almonds ranked first, followed by dairy, wine and pistachios, according to a report from the California Department of Food and Agriculture.
“California farmers are the most productive farmers in the world, but blankets are inviting retaliation for widespread tariffs on Canadian, Mexico and China imports, which could harm the farmers they are designed to protect,” Douglas said.
She added that rotible crops, including strawberries, lettuce and dairy, are in immediate danger because “trade disruptions can mean spoilage, economic losses and long-term losses in market share for decades.”
Douglas said the last tariffs on China were slumped by one quarter in 2018 “due to retaliatory liability.” Almond Industry in California It is estimated to be about $4.7 billion, more than 70% of nut exports – making it particularly vulnerable to tariffs.
“The California almond industry has been closely monitoring the announcement of U.S. tariffs and potential responses to Canada, Mexico and China,” California Almond Board spokesman Rick Kushman said in a statement.
A study found that between April 2018 and April 2022, retaliatory tariffs cost almond farmers about $875 million.
“Our industry continues to support reducing trade barriers and gain a stable market access for the California almond market,” Kushman said.
Many farmers pointed out that during Trump’s first term, when China retaliated against tariffs with its own taxes, the federal government tried to make farmers whole by providing subsidies. However, it is unknown whether the government will do this again.
Daniel Sumner, a distinguished professor of agricultural economics at UC Davis, said farmers can win multiple hits. They may face things like fertilizer and fence posts, some from Canada and also from retaliatory tariffs on exports. He noted that Canada purchased 41% of bottled wine exported from California.
On the other hand, some producers may see profits rising, he said. For example, beef producers competing with Canadian ranchers may see profits rising. However, he said consumers may see higher prices in many products in the grocery store.
