White House Shifts Strategy in Response to SCOTUS Tariff Ruling

Agriculture avoided major disruptions, but trade uncertainty remains elevated.

NASHVILLE, TENN. (RFD NEWS)A Supreme Court decision blocking prior presidential tariff authorities prompted the White House to immediately pivot to a new temporary import surcharge — a move that could carry significant implications for agriculture, trade flows, and input costs.

Following the ruling, President Trump invoked Section 122 of the Trade Act of 1974 to impose a 10 percent ad valorem import duty, effective February 24. The Administration framed the action as a response to balance-of-payments deficits and international trade imbalances. The new global import duty is set to take effect on Tuesday. However, it can only remain in place for 150 days unless Congress approves an extension.

Also, unlike earlier tariffs, the temporary surcharge includes broad exemptions critical to agriculture. Excluded products include fertilizers not sufficiently produced domestically, certain natural resources, energy products, USMCA-compliant goods from Canada and Mexico, and specific agricultural commodities such as beef, tomatoes, and oranges.

Farm-Level Takeaway: Agriculture avoided major disruptions, but trade uncertainty remains elevated.
Tony St. James, RFD NEWS Markets Specialist

Operationally, this structure limits immediate disruption to North American livestock and specialty crop trade while still raising costs on many imported goods. Fertilizer exemptions are particularly important as spring planting approaches. However, machinery parts, some chemicals, and non-exempt food ingredients could see short-term cost increases.

Regionally, grain exporters are watching currency and retaliatory risk, while livestock producers benefit from continued duty-free trade with Canada and Mexico. The suspension of duty-free “de minimis” treatment also means more small shipments will now face duties, affecting specialty inputs and direct-to-consumer imports.

Looking ahead, the surcharge expires in 150 days unless extended. While the Court restricted prior tariff authority, the Administration signaled that trade actions will continue through alternative legal channels.

Related Stories
The Farm Bureau urges trade enforcement, biofuel growth, fair input pricing, and pro-farmer policy reforms to restore long-term certainty.
A SCOTUS ruling on Trump’s tariffs could have long-term implications on the authority of future administrations to control U.S. trade policy, according to RFD-TV legal expert Roger McEowen.
The Sheinbaum–Rollins meeting signals progress, but the focus remains on fully containing screwworm before cross-border movement resumes.
Farmers for Free Trade Executive Director Brian Kuehl shares more about the tour to gather farmers’ insights on the economic challenges they face in the ag economy.
Recent U.S.–China trade developments provided a small lift for soy markets, though most traders are waiting for concrete purchase data before making major moves.

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.

LATEST STORIES BY THIS AUTHOR:

Reversion would sharply increase dairy prices and raise crop supports, driving up government costs and consumer prices while unsettling markets—even as crop insurance remains in place.
Treat financial stress as a health risk—know the warning signs, normalize conversations, and connect farm families to local and national support early.
Congress has just over a month of working days left for the year. Plan for uneven USDA service until funding is restored, and closely monitor Farm Bill talks, as avoiding Permanent Law before January 1 is the single biggest risk to markets and milk prices.
Mexico’s tougher, two-step treatment and added checkpoints are catching cases before they can spread—good news for producers near the border.
Harvest Builds As Logistics And Input Costs Shape Fall Decisions
Focus on home radon testing—not changing your diet—because background sources vastly outweigh any exposure from naturally radioactive foods.