Potential impacts of President Donald Trump’s executive orders on agriculture

President Donald Trump’s recent executive orders have the potential to significantly affect the agricultural sector in the United States.

Trump’s executive orders carry significant implications for the agricultural sector, ranging from trade tariffs and energy policies to immigration enforcement. Farmers and agricultural businesses will need to navigate these changes carefully, as they could affect everything from market access and labor availability to regulatory compliance and water resources. The full impact of these orders will unfold over time, influenced by legal challenges and market responses.

Below is an analysis of recent executive orders and their possible implications for farmers and the agricultural industry.

Imposing additional tariffs

Possible effects

Canada and Mexico are major trading partners for U.S. agricultural products. There has been swift retaliatory tariffs from all three countries, making U.S. commodities more expensive abroad. There have already been reports of Canadian grocery chains canceling orders from U.S. suppliers and replacing it from other sources.

U.S. farmers, particularly those exporting fresh produce to Canada and Mexico and tree nuts to China, could face significant challenges as their products become less competitive in these markets. Canada and Mexico represent two significant export markets for U.S. fresh produce, and there is a high potential for long-term impacts to U.S. growers.

There’s some uncertainty regarding potential government reimbursements for farmers affected by these tariffs. Recently, the Secretary of Agriculture, Brooke Rollins, has indicated the USDA will have a plan ready for farmers who are impacted if it is needed. While the programs rolled out to specialty crop producers over the last several years have benefited some growers, it’s unlikely USDA assistance programs will make up the gap of long-term trade tariffs.

Declaring a national energy emergency

This executive order allows for the year-round sale of E15 gasoline, which is a blend of 15% ethanol.

Possible effects

The order could increase demand for American corn, sorghum, and other ethanol-derived commodities. However, the actual impact may be limited without substantial investment from gasoline dealers to retrofit service stations for E15 blending.