NASHVILLE, TN – The United States will impose a 35% tariff on all Canadian goods starting August 1, President Trump announced, citing trade barriers to U.S. dairy and national security concerns. The move adds to existing sector-specific duties and could escalate tensions with a key trading partner.
This follows Trump’s announcement of a 25% tariff on all imports from Japan and South Korea, also effective August 1. The decision targets two of the top five U.S. agricultural export markets and comes despite recent growth in U.S. farm exports to both countries. Japan’s ag imports rose 6% in early 2025 to $5.8 billion, and South Korea’s grew nearly 16% to $4.4 billion.
Meanwhile, tariffs continue to impact China-bound exports. U.S. tariffs on Chinese goods stand at 51.1%, while Chinese tariffs on U.S. goods are at 32.6%. As a result, U.S. ag exports to China fell 55% from $11.1 billion to $5 billion year-to-date.
With additional tariffs on Brazil and renewed pressure on Canada, the trade environment is becoming increasingly complex. U.S. agricultural exporters now face uncertainty in all major overseas markets, raising concerns of retaliation and slowing global demand.
