The Mid-Columbia region faces economic uncertainty as U.S. tariffs on Chinese imports take effect, while those on Canada and Mexico are temporarily on hold until March. In response, China imposed retaliatory tariffs starting February 10, posing challenges for Washington's agriculture sector as growers prepare for the 2025 season.
Zippy Duvall, president of the American Farm Bureau, warned that the uncertainty comes at a critical time when farmers are securing operating loans and preparing for spring planting. Washington's top agricultural export, frozen french fries, was valued at $1.1 billion in 2023, with Japan, Mexico, and South Korea as key markets. Other major exports, including apples, cherries, hay, onions, and beef, are also affected by retaliatory tariffs.
Retaliatory tariffs raise costs for international buyers of U.S. goods. Before the pause, Canada had threatened tariffs on nearly $300 million worth of Washington's agricultural products. As a trade-dependent state, Washington exported $11.3 billion worth of agricultural goods in 2023, making it highly vulnerable to trade disputes. A $5.9 billion federal aid package for affected farmers does not specifically include Washington cherry growers, who estimate losses of up to $86 million due to the dispute.
Canada's proposed retaliatory tariffs include poultry, dairy, peaches, roasted coffee, beer, wine, watermelon, and spices. Mexico has also pledged retaliation but has not yet released a list. The situation is reminiscent of 2018 when Washington's agriculture department estimated that $650 million in exports to China and Mexico were at risk due to trade tensions. In response, Washington farmers received $50.7 million in aid, which industry leaders said fell short of actual losses.
It remains unclear how tariffs will impact planting decisions. The Washington Potato Commission expects to assess potential effects by March, while a Pasco seed producer noted that most seed purchases occur in January, limiting adjustments in production.
Despite hopes that trade conflicts with Canada and Mexico might be avoided, both countries, along with China, remain crucial markets for Washington agriculture. Canada was the top buyer in 2023, purchasing $1.3 billion worth of goods, including $70 million in fresh onions and large volumes of sweet cherries. Mexico, Washington's fourth-largest market, imported $587 million in 2023, primarily apples, nuts, fresh pears, and roasted coffee.
Washington's leading agricultural exports in 2023 included frozen french fries at $1.1 billion, fish and seafood at $1.1 billion, wheat at $684 million, and apples at $683 million, with Mexico, Canada, and Taiwan as the top buyers. China, Washington's third-largest buyer, imported $857 million worth of goods in 2023, behind Japan and Canada. With ongoing trade disputes, the state's agricultural industry faces uncertainty in both domestic and international markets.
Source: Tri-City Herald