You’ve been hearing a lot recently about President Trump’s plan to raise tariffs on our major trading partners. But, could Trump’s plan to significantly raise tariffs undo the work that’s been done by state leaders and ag business representatives to grow trade in Indiana?
“Give the President-elect a chance to put some details out there,” said Governor Eric Holcomb (R-IN) when Hoosier Ag Today asked if he had any concerns about Trump’s tariff proposals having a negative impact on the work he has done to attract foreign investments to Indiana and increase trade for the state’s agricultural products and manufacturing.
While serving as Indiana’s governor for the past eight years, Holcomb has done an extensive amount of traveling to foreign markets to build new business partnerships and to raise the value of the products grown, raised and produced in Indiana.
Holcomb has made official economic development trips to the following countries in 2024: Canada, Brazil, Mexico, Belgium, France, Netherlands, Australia, Singapore, Slovakia, Italy, Ukraine, Greece, Ireland, Saudi Arabia, and Kuwait.
Holcomb says he agrees with the underlying reason behind President Trump’s trade proposals.
“Obviously [President Trump] wants through these tariffs free and fair trade,” said Holcomb. “And so, where it’s costing us more on one end, what he’s trying to say is, we can level the playing field in a number of ways. And he’s gotten the attention of certain markets around the world by talking about tariffs, but I want to see more of the details—and I’m all for free and fair level-playing-field trade.”
Holcomb says he’ll always be bullish on the quality of Indiana ag products and the need to provide our products to folks around the world.
“Ag biotech now—it’s in our DNA, it’s who we are, it’s where we came from, it is where we take our state around the world,” said Holcomb. “I just got back from an international trip and we talked proudly about Indiana’s ag prowess—and folks know that it is good high-quality food, and fuel, and fiber that comes out of the state of Indiana. So, it’s almost fun for me to sell the State of Indiana and all that we grow and are able to share. Hopefully it’s two-way trade, but we like selling what we’ve got here.”
However, Reuters reports that Trump may be looking at getting rid of the USMCA free trade agreement with Canada and Mexico—an agreement which Trump signed in 2020 during his previous term in office. Trump, who takes office on Jan. 20, said he would begin imposing a 25 percent tariff on imports from Canada and Mexico until they clamp down on drugs, particularly fentanyl, and migrants crossing their respective borders.
Not only are Canada and Mexico among two of Indiana’s largest trading partners, but Holcomb visited Canada earlier this year in January. He also traveled to Mexico on an ag trade trip back in April.
According to the U.S. Trade Representative’s office, Indiana exported a record $56.1 billion of goods to the world. The state’s largest market was Canada. In 2023, Indiana exported $14.9 billion in goods to Canada representing 27 percent of the state’s total goods exports. Canada was followed by Mexico ($7.5 billion), China ($5.0 billion), Germany ($3.9 billion), and Italy ($3.2 billion).
In addition, Indiana is the seventh largest ag exporting state shipping $7.4 billion in domestic ag exports abroad in 2022 according to USDA. That same year, Indiana exported $2.6 billion in soybeans, $1.3 billion in corn, $836 million in feeds and other feed grains, $472 million in soybean meal, and $394 million in pork.
CLICK BELOW to hear Hoosier Ag Today’s radio news report, as Gov. Eric Holcomb addresses President Trump’s tariff proposals.
