US set to impose tariffs on imported farm products

Farm goods exported to the United States will be subjected to tariffs from next month. President Donald Trump made the announcement on social media.

Farm goods exported to the United States will be subjected to tariffs from next month.

US President Donald Trump made the surprise announcement on social media network Truth Social on Monday that tariffs would be applied to external farm products from April 2.

“To the Great Farmers of the United States: Get ready to start making a lot of agricultural product to be sold INSIDE of the United States,” Trump wrote.

“Tariffs will go on external product on April 2nd. Have fun!”

The development comes less than a week after Treasurer Jim Chalmers watered down fears of looming US tariffs on Australian goods.

Dr Chalmers spent two days last week in the US meeting with top officials including US Treasury Secretary Scott Bessent and President Donald Trump’s senior economic adviser Kevin Hassett.

Before attending a business summit at Ambassador Kevin Rudd’s Washington residence, Dr Chalmers sat down with Mr Bessent and Mr Hassett for over an hour.

“I was able to make the case for Australia … It was a constructive conversation. It was wide-ranging, it was positive, and it was productive,” Dr Chalmers said.

The Treasurer said he was able to continue, “but not conclude”, discussions Prime Minister Anthony Albanese had with Mr Trump earlier this month, when the President said he would give “great consideration” to Australia’s request for tariff exceptions.

Mr Trump described Mr Albanese as a “very fine man” to reporters after their 40-minute phone conversation.

Tariffs of 25 per cent loom for all aluminium and steel exports on March 12. Cattle and sheep producers in the US have also called on the Trump administration to impose tariffs on Australian red meat imports – as well as those from Brazil and Canada – which they blame for limiting their domestic production capacity.

But the likelihood of this materialising has been rejected by industry figures.

Agriculture analyst Matt Dalgleish said Mr Trump had come to office with a mandate to reduce household costs for consumers, particularly food prices.

“Beef supply is expected to be tight this year and they’re big eaters of beef so to place a tariff on red meat supply is probably going to be quite inflationary,” Mr Dalgleish said.

“They’re in their six-year liquidation, with the lowest beef herd since 1951 and that’s impacting on production and the domestic consumer getting what they need, and that’s why Australia has increased its flow into the US.”

Treasurer Jim Chalmers meets with US Secretary of the Treasury, Scott Bessent and National Economic Council Director Kevin Hassett, and Kevin Rudd in Washington DC this week. Picture: Michael Butcher

Dr Chalmers said Australia had a stronger case to make than other countries due to this nation’s long-running trade deficit with the US, a point the Albanese Government has been at pains to stress since Mr Trump signed an executive order to impose a blanket 25 per cent tariff on steel and aluminium imports on February 10.

This was followed with threats days later to impose wide-ranging tariffs in response to other countries’ tariffs, tax policies and unfair practices.

Dr Chalmers said his conversation on Tuesday morning with Mr Bessent and Mr Hassett was wider ranging than just steel and aluminium.

But Mr Besset deflected responsibility for making the call for a carve out for Australia after their meeting, saying the decision was Mr Trump’s to make.

“That doesn’t mean that there’s not an opportunity for all of us to engage with our colleagues and counterparts here in DC,” Dr Chalmers said, in addition to direct lobbying from Mr Albanese to Mr Trump.

“There is very little friction between the US and Australia, but with many of our other trading partners there is a great deal of friction,” Mr Bessent said.