The effects of tariffs and freezes on local farmers

As the U.S. navigates the ongoing trade disputes, Arizona farmers are balancing their dependence on international markets.

Farmers say they are feeling the effects of tariffs imposed by the Trump Administration as the U.S.’s trading partners institute retaliatory tariffs on grains and other crops. China has imposed tariffs on grains and soybeans.

The White House is imposing tariffs in an attempt to reduce illegal immigration and stop fentanyl and other drugs from entering the country.

In China, U.S. soybeans are now subject to an additional 10% tariff, while corn gets hit with an extra 15% charge.

Tariffs were imposed on farmers the last time President Donald Trump was in office, and it cost the industry more than $27 billion. Many farmers were given subsidies to make up for the losses.

The Trump Administration also just announced it was freezing nearly $1 billion in funding that allows schools and food banks to buy directly from farmers.

John Boelts, President of the Arizona Farm Bureau, joined us to discuss.

Mexico and Canada being key partners, farmers are closely watching policy decisions that could shape their industry.

“We do export a lot of products in that direction, but we also import a lot into Arizona. So we are directly competing with a lot of Mexican imports,” Boelts said.

According to Boelts, southern Arizona, particularly regions like Yuma, produce a large quantity of melons and fresh produce.

“We export 10 to 15% of our production each year to Canada, so it’s a big, big consumer for us,” Boelts said.

U.S. farmers depend on exporting their products because for many products, like corn, the country produces more than it is able to consume.