By Andi Anderson
The Michigan Agri-Business Association (MABA) has issued an important update for agriculture stakeholders regarding new trade and tariff changes announced by the U.S. administration.
The update follows inquiries from MABA members and focuses on potential impacts for trade with key partners under the USMCA.
On July 31, President Trump issued an Executive Order increasing import duty rates from 10% to 41% for about 70 countries. These changes take effect in seven days, leaving room for negotiations. Countries not listed in the order will face a 10% rate. Goods shipped during the next week are exempt from the higher tariffs.
Mexico, Michigan’s second-largest agricultural export market, received a 90-day extension for ongoing trade talks. During this time, existing tariffs remain: 25% on fentanyl and cars, and 50% on steel, aluminum, and copper. Mexico also agreed to end many non-tariff trade barriers.
For Canada—Michigan’s top agricultural trade partner—the U.S. raised tariffs on non-USMCA-compliant goods from 25% to 35%, but retained the USMCA exemption.
MABA emphasized that eliminating this exemption or escalating tariffs could severely impact Michigan’s agriculture sector, which relies on open trade for exports and critical imports like crop nutrients and feed.
MABA reaffirmed its support for stable international markets. The association warns that any retaliatory measures involving Canada or Mexico could disrupt Michigan’s long-standing trade ties and harm economic stability in the state’s rural economy.
To assist members with tariff compliance, MABA recommends resources from U.S. Customs and Border Protection, including importer tips and an overview of the import process.
Photo Credit: gettyimages-zoran-zeremski
Categories: Michigan, Business