Reciprocal Tariffs Expected Today, Details Remain Unknown

Reuters’ Nandita Bose and Trevor Hunnicutt reported that “the White House confirmed on Tuesday that President Donald Trump will impose new tariffs on Wednesday, though it provided no details about the size and scope of trade barriers that have businesses, consumers and investors fretting about an intensifying global trade war.”

“Trump has for weeks trumpeted April 2 as a ‘Liberation Day’ that will see dramatic new duties that could upend the global trade system, with a White House Rose Garden announcement scheduled for 4 p.m. Eastern Time (2000 GMT),” Bose and Hunnicutt reported. “White House spokeswoman Karoline Leavitt said reciprocal tariffs on countries that impose duties on U.S. goods would take effect immediately after Trump announces them, while a 25% tariff on auto imports will take effect on April 3.”

The White House confirmed that President Trump will impose new tariffs on April 2 as announced earlier, but no details about the size and scope of the same were provided https://t.co/DpDhjp723S pic.twitter.com/gXbj3Fqedk

— Reuters (@Reuters) April 2, 2025

“Treasury Secretary Scott Bessent told Republican House lawmakers that the reciprocal tariffs Trump will announce represent a ‘cap’ of the highest U.S. tariff level that countries will face and could go down if they meet the administration’s demands, according to Republican Representative Kevin Hern from Oklahoma,” Bose and Hunnicutt reported.

“Hard details of what Trump will unveil on Wednesday remained unclear. According to the Washington Post, aides are considering a plan that would raise duties on products by about 20% from nearly every country, rather than targeting certain countries or products,” Bose and Hunnicutt reported. “The administration anticipates the new duties could raise more than $6 trillion in revenue that could be sent on to Americans as a rebate, the paper reported.”

“Meanwhile, the Wall Street Journal, citing people familiar with knowledge of discussions, reported the U.S. Trade Representative is preparing the option for an across-the-board tariff on a subset of nations that likely would not be as high as a 20% universal tariff option,” Bose and Hunnicutt reported. “A White House aide said any report ahead of (Wednesday’s) event is ‘mere speculation.'”

Potential Ag Impacts

Reuters Karl Plume reported that “U.S. consumers could see prices rise for food, from meat and dairy products to avocados and fresh fruits and vegetables, as a result of tariffs, economists have said.”

“Retaliation from China, Canada and Mexico would hurt the $191 billion U.S. agricultural export sector. They are the top three markets for American farm products and imported a total of $91 billion in U.S. agricultural goods and related products in 2024,” Plume reported. “Retaliatory tariffs during Trump’s first term resulted in around $27 billion in lost U.S. agricultural exports, including $25.7 billion in sales to China, according to Rabobank analysts. Soybeans, the top U.S. farm export by value, as well as corn, wheat and meat exports are vulnerable to retaliatory tariffs.”

Some agriculture-related impacts are already clear ahead of today’s expected tariff announcement. For example, AgWeb’s Matthew J. Grassi reported that “CNH Industrial has confirmed online reports it will temporarily pause farm equipment shipments from North American factories as well as from its European counterparts, effective immediately.”

“‘We are stopping shipments from North America plants and European imports effective today. This is a temporary move until we assess the full impact of planned tariffs on pricing. There are no impacts to production, and parts shipments continue as planned. We will continue to monitor the situation,’ CNH said,” according to Grassi’s reporting.

Ag Groups Sounding the Alarm About Retaliation

Progressive Farmer’s Chris Clayton reported that “major agricultural groups have written four Cabinet secretaries in the Trump administration raising their concerns about trade retaliation as President Donald Trump prepares for a White House event Wednesday to detail his tariff agenda.”

“The letter from farm groups draws a fine line of supporting the president’s trade goals while fearing the worst ramifications for the ag economy,” Clayton reported. “‘We appreciate the President’s focus on achieving fairer trade for United States producers, workers and industry,’ the farm groups wrote. That was followed by declaring how critical exports are to the agricultural sector. ‘More than 20% of U.S. farm income is based on agricultural exports, and it is much higher for many commodities.'”

“Agricultural groups have been lobbying for tariff exemptions on imports — much like the president did to lower the proposed tariff on potash from Canada,” Clayton reported. “The agricultural sector also will watch to see how markets react and whether the Trump administration is prepared to offer aid in the case of retaliatory tariffs.”

“Rather than tariffs, the agricultural groups called for negotiations and trade agreements,” Clayton reported. “They support reviewing the United States-Mexico-Canada Agreement (USMCA) in 2026 and called for trade talks with the United Kingdom, India and other countries that could expand market access for U.S. products.”

“Groups representing ag retailers, corn, soybeans, pork, dairy, wheat, cotton, produce, fertilizer and crop inputs signed on to the letter along with general farm organizations,” Clayton reported. “They sent the letter to Agriculture Secretary Brooke Rollins, Commerce Secretary Howard Lutnick, Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer.”