Tariff Barriers Raise Costs for U.S. Farm Exports

Higher border taxes can increase costs for overseas buyers of U.S. farm products.

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NASHVILLE, Tenn. (RFD News) — WTO tariff data show U.S. farmers face uneven costs when their products enter major export markets, adding pressure as agriculture runs a trade deficit.

The World Trade Organization lists the U.S. average applied agricultural tariff at 5.0 percent. Major partners are higher, starting with the United Kingdom at 8.6 percent, the European Union at 10.3 percent, Mexico at 11.6 percent, Japan at 12.1 percent, China at 14.0 percent, Canada at 14.5 percent, India at 36.4 percent, and South Korea at 57.0 percent.

A tariff is a border tax, usually paid by the foreign importer, buyer, processor, or distributor. As a simple illustration, a 57 percent tariff adds $57 to a $100 shipment, raising the buyer’s cost to $157 before freight, handling, currency, or other costs.

Those averages do not mean every U.S. commodity pays that exact rate. Trade agreements, quotas, product rules, and temporary actions can change the actual tariff.

Still, the effect can reach the farm gate. Higher border costs can make U.S. soybeans, corn, wheat, cotton, beef, pork, or dairy less competitive, weakening demand, bids, and market share.

Farm-Level Takeaway: Tariffs are not the only cause of the ag trade deficit, but they help explain why U.S. producers do not always compete on equal footing.
Tony St. James, RFD News Markets Specialist

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

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