How 2025 IEEPA Tariffs Affected Agricultural Inputs and Production Costs

By Jiyeon Kim

Andrew Muhammad, Ph.D. Professor and Blasingame Chair of Excellence, University of Tennessee Institute of Agriculture- Department of Agricultural and Resource Economics

In 2025, the President imposed a series of tariffs under the International Emergency Economic Powers Act (IEEPA), reshaping U.S. trade policy. These measures, ranging from fentanyl‑related tariffs in February to broad reciprocal tariffs implemented in April, generated an estimated $130 billion in revenue by early December with implications for multiple sectors, including agriculture. Agricultural inputs such as fertilizer, pesticides, seeds, and farm machinery were subject to these duties, resulting in roughly $1.1 billion in tariff collections between February and November. Although representing small shares of total farm input spending, these tariffs contribute to rising production costs throughout the supply chain (Arita et al., 2026). We provide a brief discussion of these tariffs in this article; a more detailed analysis is presented in IEEPA Fertilizer Tariffs: Revenue, Relief, and Pass‐Through at the following link: https://ageconsearch.umn.edu/record/387621?v=pdf.

IEEPA tariffs have been imposed on several agricultural inputs including fertilizer, pesticides, seeds, and farm machinery, against a backdrop of already volatile input prices and low commodity prices. Based on import data from the U.S. International Trade Commission and tariff rates specified in executive orders, IEEPA tariff revenue collected on agricultural input imports is estimated at roughly $1.1 billion between February and November 2025 (see Figure 1).