New data from USDA’s Economic Research Service (ERS) shows retaliatory tariffs reduced U.S. ag exports annually by $13.2 billion.
Specifically, the research points to six trading partners, Canada, China, the European Union, India, Mexico, and Turkey, that announced retaliatory tariffs affecting agriculture and food products in 2018.
The retaliatory tariffs followed U.S. tariffs on steel and aluminum imports from major trading partners and on a broad range of imports from China.
The agricultural products targeted for retaliation were valued at $30.4 billion in 2017, with individual product lines experiencing tariff increases ranging from two to 140 percent. USDA estimates annualized losses from mid-2018 through the end of 2019 totaled $13.2 billion across 17 commodity groups, led by soybeans, sorghum, and pork.
While retaliatory tariffs affected all states, the Midwest experienced the largest losses. ERS researchers estimated Iowa lost $1.46 billion, Illinois, $1.41 billion, and Kansas, $955 million, all on an annualized basis.