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"It's a five-alarm fire," one Kentucky soybean farmer said, describing the harmful effects of the president's tariffs.
As anticipated, US President Donald Trump's economic and immigration policies are harming American farmers' ability to earn a living—and testing the loyalty of one of the president's staunchest bases of support, according to reports published this week.
After Trump slapped 30% tariffs on Chinese imports in May, Beijing retaliated with measures including stopping all purchases of US soybeans. Before the trade war, a quarter of the soybeans—the nation's number one export crop—produced in the United States were exported to China. Trump's tariffs mean American soybean growers can't compete with countries like Brazil, the world's leading producer and exporter of the staple crop and itself the target of a 50% US tariff.
"We depend on the Chinese market. The reason we depend so much on this market is China consumes 61% of soybeans produced worldwide," Kentucky farmer Caleb Ragland, who is president of the American Soybean Association, told News Nation on Monday. "Right now, we have zero sold for this crop that’s starting to be harvested right now.”
Ragland continued:
It’s a five-alarm fire for our industry that 25% of our total sales is currently missing. And right now we are not competitive with Brazil due to the retaliatory tariffs that are in place. Our prices are about 20% higher, and that means that the Chinese are going elsewhere because they can find a better value.
And the American soybean farmers and their families are suffering. They are 500,000 of us that produce soybeans, and we desperately need markets, and we need opportunity and a leveled playing field.
“There’s an artificial barrier that is built with these tariffs that makes us not be competitive," Ragland added.
Tennessee Soybean Promotion Council executive director Stefan Maupin likened the tariffs to "death by a thousand cuts."
“We’re in a significant and desperate situation where... none of the crops that farmers grow right now return a profit,” Maupin told the Tennessee Lookout Monday. “They don’t even break even.”
Alan Meadows, a fifth-generation soybean farmer in Lauderdale County, Tennessee, said that “this has been a really tough year for us."
“It started off really good," Meadows said. "We were in the field in late March, which is early for us. But then the wheels came off, so to speak, pretty quick.”
It started with devastating flooding in April, followed by a drier-than-usual summer. Higher supply costs due to inflation and Trump's tariffs exacerbated the dire situation.
“So much of what has happened and what’s going on here is totally out of our control,” Meadows said. “We just want a free, fair, and open market where we can sell our goods... as competitively as anybody else around the world. And we do feel that we produce a superior product here in the United States, and we just need to have the markets.”
Farmers are desperate for help from the federal government. However, Congress has not passed a new Farm Bill—legislation authorizing funding for agriculture and food programs—since 2018, without which "we do not have a workable safety net program when things like this happen in our economy," according to Maupin.
Maupin added that farmers “have done everything right, they’ve managed their finances well, they have put in a good crop... but they cannot change the weather, they cannot change the economy, they cannot change the markets."
"The weather is in the control of a higher power," he added, "and the economy and the markets are in control of Washington, DC."
It's not just soybean farmers who are hurting. Tim Maxwell, a 65-year-old Iowa grain and hog farmer, told the BBC Sunday that "our yields, crops, and weather are pretty good—but our [interest from] markets right now is on a low."
Despite his troubles, Maxwell remains supportive of Trump, saying that he is "going to be patient," adding, "I believe in our president."
However, there is a limit to Maxwell's patience with Trump.
"We're giving him the chance to follow through with the tariffs, but there had better be results," he said. "I think we need to be seeing something in 18 months or less. We understand risk—and it had better pay off."
It's also not just Trump's economic policies that are putting farmers in a squeeze. The president's anti-immigrant crackdown has left many farmers without the labor they need to operate.
“The whole thing is screwed up,” John Painter, a Pennsylvania organic dairy farmer and three-time Trump voter, told Politico Monday. “We need people to do the jobs Americans are too spoiled to do.”
As Politico noted:
The US agricultural workforce fell by 155,000—about 7%—between March and July, according to an analysis of Bureau of Labor Statistics data. That tracks with Pew Research Center data that shows total immigrant labor fell by 750,000 from January through July. The labor shortage piles onto an ongoing economic crisis for farmers exacerbated by dwindling export markets that could leave them with crop surpluses.
“People don’t understand that if we don’t get more labor, our cows don’t get milked and our crops don’t get picked,” said Tim Wood, another Pennsylvania dairy farmer and a member of the state's Farm Bureau board of directors.
Charlie Porter, who heads the Pennsylvania Farm Bureau’s Ag Labor and Safety Committee, told Politico that “it’s a shame you have hard-working people who need labor, and a group of people who are willing to work, and they have to look over their shoulder like they’re criminals—they're not."
Painter also said that he is "very disappointed" by Trump's immigration policies.
“It’s not right, what they’re doing,” he said of the administration. “All of us, if we look back in history, including the president, we have somebody that came to this country for the American dream.”
“Poor and working people are paying the price" of the president's tariff policies, said Rep. Pramila Jayapal.
US consumers are increasingly feeling the impact of President Donald Trump's tariffs, and the head of the Congressional Budget Office said on Monday that they are fueling inflation.
During an appearance on CNBC, Congressional Budget Office (CBO) director Phillip Swagel said that the president's tariffs have pushed up inflation more than the agency initially anticipated, although he emphasized that their impact on inflation so far was "not by a lot, but by enough to show" in the numbers.
Swagel also said that the higher-than-expected inflation was a surprise because there are signs that the US economy has slowed significantly since January.
CNN on Tuesday published an analysis using numbers from the Yale Budget Lab estimating that Trump's tariffs will cost US households an average of $2,300 extra per year, which is nearly three times as much as the $800 US households are projected to receive on average from new tax provisions contained in the Republicans' "One Big Beautiful Bill Act" that passed earlier this year.
The combined distributional impacts of the Trump tariffs and the GOP tax law are also highly regressive. According to CNN's analysis, a household with annual earnings of $38,840 would be $2,560 worse off thanks to the tariffs and the tax law, while households earning $517,700 would be $8,180 better off.
The Washington Post on Tuesday reported that Trump's tariffs aren't just hurting Americans in the US, but those living abroad as well.
As explained by the Post, Americans living abroad have been unable to send mail to the US without paying hefty fines thanks to the chaos being caused by Trump's tariffs. The reason for this, writes the paper, is that Trump earlier this year canceled a policy known as the de minimis exemption, effective August 29, that "allowed the tariff-free flow of goods under $800 into the United States."
This has led not just to increased shipping costs for Americans living abroad, but has also resulted in foreign nations slowing or even outright halting shipments to the US because they are unsure about how to calculate the costs.
"Confusion about the rules have led to issues since the exemption was lifted on August 29," the Post wrote. "At first, national postal services in more than 30 countries temporarily suspended sending some or most US-bound packages. Since then, restrictions have eased, and the Universal Postal Union deployed a tool this week to help operators calculate duties and resume services."
Reacting to fresh revelations about the impact of the tariffs, many progressive Democrats hammered Trump for increasing the cost of living for working-class families.
"Under Donald Trump’s economy: coffee is up 26%, beef is up 14%, oranges are up 17%, bananas are up 6%, chicken is up 6%, chocolate chip cookies are up 5%, potato chips are up 4%, milk is up 4%," wrote Sen. Elizabeth Warren (D-Mass.). "But average worker pay is only up 2%. Trumpflation is eating up your paycheck."
Rep. Pramila Jayapal (D-Wash.) added that “from school supplies to gas to groceries, Trump is making your life more expensive."
"Poor and working people are paying the price of his reckless policies," said the congresswoman.
Sen. Alex Padilla (D-Calif.), a member of the Senate Committee on Energy and Natural Resources, took to the Senate floor on Monday to single out a different Trump policy that he said was also raising prices for US consumers—namely, his attacks on green energy projects.
"This administration is shamelessly working to block one of our best defenses against rising energy bills: renewable energy," Padilla said. "And I say so because renewable energy is absolutely affordable, renewable energy is abundant, and whether you want to admit it or not, renewable energy sources are our future."
The senator also pointed to his home state of California as an example of what can happen when the government encourages the development of green energy projects.
"[California is] harnessing the power of solar and wind and hydroelectric power and nuclear, geothermal, even hydrogen power to our state," he said. "And it’s exactly because of those investments that even in a year like 2024, just last year, when we experienced record heatwaves that we also saw record renewable energy generation, and we kept the lights on."
New labeling requirements to ensure the integrity of domestic markets, as well as price guarantees tied to anti-dumping measures, could improve the economic prospects of producers amid our ongoing trade war.
Farmers may be the proverbial “canaries in the coal mine” when it comes to the effects of US President Donald Trump’s grand tariff experiment.
Point in fact—corn and soy prices are experiencing precipitous falls in no small part due to tariffs that China has placed on US imports. Cotton prices are dropping for the same reason, as nearly 80% of this crop is destined for export and China slapped a 15% retaliatory tariff on it. Prices for pork and beef appear on a different trajectory, with the latter benefiting from domestic shortages. But even here, trouble is on the horizon as China has cut back on imports from the US. This, as Brazil is exporting more soy, beef, and cotton to China to replace what US farmers once sent. It is no coincidence that the percentage of farm income in 2025 coming from government payments—25%—is approaching the level it was at when the Covid-19 pandemic devastated markets in 2020. The $59 billion dedicated for farmers’ relief payments in the "One Big Beautiful Bill" is testament to the fact that the economic future of rural America appears bleak.
The economic challenges our farmers face places even more pressure on the upcoming United States-Mexico-Canada (USMCA) renegotiations. Even though set for next year, Mexico, Canada, and the US are already staking positions and signaling their intentions. Look no further than Mexico contemplating placing tariffs on Chinese imports, a move clearly meant to stay in the good, however fickle, graces of the Trump administration.
Looking out for US farmers, there are some concrete policies that a renegotiated USMCA could feature. Specifically, new labeling requirements to ensure the integrity of domestic markets, as well as price guarantees tied to anti-dumping measures, could improve the economic prospects of producers as they struggle to weather the uncertainty of our ongoing trade war.
The problem is that in the past, the Trump administration took the wrong approach for how to improve the situation of producers when dealing with our neighbors. Concretely, when Trump renegotiated the North American Free Trade Agreement (NAFTA) last time he was in office, besides rebranding it the USMCA, he also sought to open Canadian markets for US dairy exports.
Eking out marginal increases, those gains ultimately made no real improvement in the prices that farmers received. Proof of this is how dairy farmers have consistently struggled to stay in business, as we have witnessed a 25% nationwide decline from 2017 to 2023 in the number of licensed dairy herds. The recent uptick in dairy prices has nothing to do with USMCA, but instead to a reduction in feed costs and farmers cutting down their herds by selling heifers for beef.
Farmers are known for their resiliency. At the same time, they can only take so much.
Failing to finagle improved prices for farmers from changing exports, this time USMCA negotiations should focus on ensuring the integrity of markets.
The first step toward this would be for the US to reinstate Mandatory Country of Origin Labeling (MCOOL). Originally part of the 2002 Farm Bill before being removed after Canada and Mexico put pressure on the World Trade Organization (WTO), this program would make retailers disclose the origins of their products, including milk, dairy, meat, fish, and fruits, and vegetables. As such, MCOOL allows consumers to make informed purchasing decisions and choose our products instead of picking the cheapest goods of dubious quality that may come from abroad.
Such a change would assist ranchers particularly, as since Trump has taken office, Brazilian beef imports flooded US markets. And since the WTO has been paralyzed since Trump’s first term when he chose not to appoint judges to the institution’s appellate court, now MCOOL can return without opposition.
Next, pricing policies could be put in place to assure a decent income for farmers and prevent dumping.
The US has already made one move in this direction, placing a 17% tariff on tomato imports and accusing Mexican growers of dumping, that is, exporting goods into another market at below cost to drive competitors out of business.
Preventing dumping also cuts both ways, as when NAFTA was first introduced, US corn imports drove Mexican farmers out of business, into poverty, and then to cross the border. Accordingly, if Mexico wants to restrict the flow of some commodity south, such as corn, they should be allowed to.
To avoid a tit-for-tat battle, resolving this issue requires setting floor prices in some capacity. Like what they have already done with wages for automobile workers, negotiators could do the same for grains, as well as for livestock. They could also set limits on what comes from outside the trade bloc, like Mexico appears ready to do with China. The same could be done with Brazil and its beef, or perhaps with the many European countries that send billions of dollars of cheese a year into the US. Cheese is a critical element of dairy pricing, and decreasing imports could lead to more US production and better prices for farmers.
Farmers are known for their resiliency. At the same time, they can only take so much. Export-driven growth may sound like a good idea, but the reality has been different. A renegotiated USMCA that actually puts farmers first could turn things around and give producers a fighting chance to make a decent income and stay on the land.