New US tariffs for imported farm products flagged

Farm goods exported to the US will be subject to tariffs from next month. China’s Ministry of Commerce says it will retaliate with a 15 per cent levy on US imports.

Donald Trump’s trade war is heating up, as the US President flags imported farm products will become the latest target for new tariffs.

President Trump announced on his social media platform Truth Social that “external” agricultural products would be subjected to tariffs from next month.

“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,” President Trump wrote on Monday.

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

Australia sold about $8.2b worth of farming goods to the US in 2024, according to the Australian Bureau of Statistics, mostly beef, lamb, dairy and wine.

China’s Ministry of Commerce however has already announced it would retaliate with a 15 per cent levy on US imports of chicken, wheat, corn and cotton, and a 10 per cent levy on sorghum, fruit, vegetables and dairy products.

Canada's Prime Minister Justin Trudeau speaks about the US tariffs against Canada on March 4, 2025 on parliament Hill in Ottawa. Photo by Dave Chan / AFP

Canada has followed suit, announcing retaliatory tariffs on US exports just hours after the US imposed 25 per cent taxes on Canadian and Mexican goods and a 10 per cent levy on Canadian energy exports.

US alcohol has been stripped from bottle shops, Canada had barred US companies bidding on procurement contracts while a contract with Elon Musk’s Starlink has been torn up.

Australian diplomats are stressing to their US counterparts that Australia should be exempt from tariffs given US exporters have tariff-free access into Australia.

Trade Minister Don Farrell said many Australian farmers relied on US agricultural technology and products to produce their goods.

“The Government has been working hard to advocate for Australia’s interests, including maintaining free and fair trade between Australia and the US, which benefits both our countries,” Mr Farrell said.

Threats of tariffs on all imported farmed goods – including Australian – comes just two years after Australia signed a multi-billion deal with the US to build nuclear-powered submarines.

Ad part of the agreement, Australian taxpayers will fund the ratcheting up of American shipbuilding to the tune of about $3b over the next few years.

The United States Studies Centre’s director of research Jared Mondschein said President Trump’s targeting of agriculture was unsurprising given food was one of the most protected areas of international trade.

“It is a really politically sensitive topic so I can’t say I’m all that surprised by them (the tariffs), but my question is, how long will he go ahead with these tariffs?

“He is the so-called deal maker, and he generally does not do these sorts of gestures without the intention of negotiation. So what is he hoping to get? It’s something I’m sure the Australian mission in the US is trying their best to find out,” Mr Mondschein said.

He said analysis of Trump’s first term found that any revenue raised by agricultural tariffs was used to pay off farmers who were economically impacted by retaliatory tariffs.

US President Donald Trump has come good on his threat of global tariffs within just months of taking office. Photo by Roberto Schmidt / AFP

Rabo Bank’s general manager of RaboResearch, Stefan Vogel, said there would still be demand for imported beef in the US as it rebuilds its herd, but US consumers may be reluctant to purchase more expensive imported products.

“They will be asking themselves, ‘do I buy an expensive burger patty or a chicken breast?’ It probably means there will be a reduction in demand from the US,” Mr Vogel said.

“Currently we’re shipping about 23 per cent of all the beef we’re producing to the US so it’s a high share … so we need to make sure we still have good volumes flowing into our traditional big markets of Korea, Japan and China.”

The surprise announcement comes less than a week after Treasurer Jim Chalmers was in Washington meeting top US diplomats.

The Treasurer gave no indication that new tariffs were to be applied to farmed goods, telling reporters his hour-long meeting with US Treasury Secretary Scott Bessent and President Donald Trump’s senior economic adviser Kevin Hassett was “positive”.

“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.

Since returning to the White House in January, President Trump has threatened “global tariffs”, tariffs of 25 per cent on goods from Canada, China and Mexico as well as on imported steel and aluminium.