Trump's tariffs threaten U.S. farmers' financial stability

American farmers are facing tough times due to recent tariff threats from President Donald Trump. On March 4, Trump announced a 25% tariff on imports from Canada and Mexico, while also raising tariffs on Chinese goods up to 20%. A few days later, he suspended some tariffs related to the United States-Mexico-Canada Agreement (USMCA) but lowered the levy on potash, a vital fertilizer, to 10%. Potash is essential for U.S. agriculture. It helps plants grow stronger, resist diseases better, and use water more efficiently. This is important because higher crop yields can lead to better profits for farmers. Approximately 80% of potash used in the U.S. comes from Canada, which produces more potash than any other country. If tariffs increase the price of potash, it could result in lower crop yields and, ultimately, higher prices for food and other agricultural products. Farmers were already struggling financially before these tariffs. A survey by McKinsey & Company in 2022 showed that 80% of farmers considered rising costs for fertilizers, labor, and other inputs to be the biggest threat to their profits. Zippy Duvall, president of the American Farm Bureau Federation, warned that adding more costs could be a significant burden for many farmers. Furthermore, earlier this year, Trump froze funding from the U.S. Department of Agriculture for grants and loans, causing many farming projects to stall. With rising costs and changing policies, farmers may find it increasingly difficult to stay profitable, which could also affect food supply in the country.