Some Good (Tariff) News: Canadian Potash Edition

ICYMI, tariffs have taken a front row seat in the news lately. Earlier this week, we covered President Trump’s “ever-evolving” tariffs. On that note, here’s another “ever-evolving” update.

What now?! Trump signed an executive order late last week allowing products covered by the “USMCA to be outside the 25% tariffs which were previously announced.” Of particular interest are Canadian potash imports to the U.S., which will now receive a reduced import tariff of 10%. 

The loophole: The White House stated that duties of 25% will be imposed on goods that don’t satisfy the USMCA (U.S.-Mexico-Canada Agreement) rules of origin. But there’s a lower 10% tariff on energy products imported from Canada that fall outside of USMCA preference, and a lower 10% tariff on potash.

What’s included vs. what’s not: In 2024, 38% of all Canadian imports were covered by the USMCA—aka exempt from tariffs. Meanwhile, nearly half of Mexican imports were covered under the USMCA.

The exemptions apply through April 2; however, the executive order doesn’t mention this deadline. When April 2 hits, Trump will reassess, according to a White House official.

Soundbite: “Given that the United States sources over 85% of its potash from Canada, this exemption is crucial to prevent supply disruptions and cost increases that could adversely affect farmers nationwide.” — Daren Coppock, Agricultural Retailers Association CEO

Not out of the woods: While the potash news is welcome news to farmers, House and Senate Ag Committee members have warned they’re not even close to being out of the woods. Amy Klobuchar (D-MN) recently wrote to President Trump with 14 of her colleagues about tariffs keeping farmers out of export markets and driving up input costs.