USMCA will cause US ag exports to decline by $1.8B

A new report says the United States-Mexico-Canada Agreement (USMCA) will expand U.S. agricultural exports by $450 million, but those gains will be negated by retaliatory tariffs by Canada and Mexico against the U.S. The study, “How U.S. Agriculture Will Fare Under the USMCA and Retaliatory Tariffs,” was commissioned by agricultural policy institute Farm Foundation and completed by Purdue University agricultural economists Dominique van der Mensbrugghe, Ph.D., Wallace Tyner, Ph.D., and Maksym Chepeliev, Ph.D.The analysis says retaliatory tariffs will cause U.S. agricultural exports to decline by $1.8 billion and that, with continued tariffs from China and other trading partners, “the United States would see a decline in agricultural exports of $7.9 billion, thus overwhelming the small positive gains from USMCA.”