Retaliatory tariffs from Canada and China are expected to impact key U.S. exports, particularly beverages, beef, and sorghum, according to a report from the American Farm Bureau Federation (AFBF).
In February, the White House announced a 25% tariff on Canadian imports—excluding energy—though it is currently paused until April. Additional tariffs were also imposed on Chinese goods. In response, Canada introduced its own 25% tariff on $21 billion worth of U.S. products, with plans for a second round affecting an additional $87 billion. China has also enacted countermeasures, including a 15% tariff on U.S. wheat, corn, chicken, and cotton, and a 10% tariff on soybeans, beef, pork, dairy, fruits, and vegetables.
The U.S. beverage industry is particularly vulnerable to Canada’s tariffs. In 2023, nonalcoholic beverages (excluding coffee and juice) led U.S. food exports to Canada at $494 million, followed closely by coffee ($493 million), chocolate and cocoa products ($469 million), and wine ($425 million). Other major exports included condiments and sauces ($405 million), confectionery products ($369 million), bakery goods such as cereals and pasta ($285 million), dairy products ($212 million), and poultry products ($211 million).
China is a major market for U.S. soybeans, which accounted for $12.8 billion in exports in 2024. Other top agricultural exports included beef ($1.6 billion), cotton ($1.5 billion), and grain sorghum ($1.3 billion). Pork ($1 billion), wheat ($482 million), poultry ($478 million), corn ($331 million), and dairy products ($253 million) were also significant.
With over 20% of U.S. agricultural goods sold internationally, these tariffs could reduce demand and cut into farm profits. Farmers, who have little control over pricing, must navigate these market changes while managing unpredictable factors like weather and production costs.
