Tariffs, proposed shipping costs, lead to uncertainty in ag industry

Tariffs and retaliatory actions by trading partners are causing “uncertainty” throughout the ag industry, and economic experts during NDSU’s Agricultural Market Situation and Outlook Webinar on April 4 discussed the impacts of the tariffs on agriculture, as well as the new proposals for shipping and vessels, especially for Chinese vessels, that would charge upwards of $1 million for entry into the U.S. ports.

Steel and aluminum

Tariffs on steel were set at 25 percent and will continue at that percentage indefinitely, according to Bryon Parman, NDSU ag finance specialist.

“The exemptions for a lot of the carve-outs for steel manufactured products like stamped bumpers and things like that are going away,” he said.

Aluminum tariffs have risen from 10 percent to 25 percent across the board, and the top country the U.S. imports aluminum from is Canada. While the U.S. imports about 24 percent of the steel it uses, it imports a larger share of aluminum.