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Wednesday, February 19, 2025

Klobuchar raises tariff concerns at agricultural economy hearing

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Sen. John Boozman - Ranking Member of the Senate Agriculture, Nutrition and Forestry Committee | https://www.agriculture.senate.gov

Sen. John Boozman - Ranking Member of the Senate Agriculture, Nutrition and Forestry Committee | https://www.agriculture.senate.gov

U.S. Senator Amy Klobuchar, serving as the Ranking Member of the Senate Committee on Agriculture, Nutrition, & Forestry, voiced concerns about the proposed tariffs on Canada and Mexico during a hearing focused on the Agricultural Economy. The senator emphasized the potential negative impact these tariffs could have on American farmers.

National Farmers Union President Rob Larew testified that even the threat of tariffs is "adding costs onto goods," with some suppliers refusing to sell products for future delivery dates due to uncertainty. He recounted an incident in Columbus, Indiana, where a farmer was attempting to expedite product across the Canadian border amidst rising costs.

American Farm Bureau Federation President Zippy Duvall also expressed concerns over market shrinkage and production costs. He stated, "We need more access, not less. We need more fair trade deals, not less." Duvall highlighted that a significant portion of potash used in U.S. agriculture comes from Canada and warned that increased fertilizer costs could be detrimental to farmers.

Senator Klobuchar acknowledged support for targeted tariffs but criticized broad measures that could harm farmers' livelihoods and lead to retaliatory actions from trading partners. She stressed the importance of maintaining progress in international market access and avoiding setbacks caused by sweeping tariff policies.

Klobuchar pointed out that imposing 25 percent tariffs on Canada and Mexico might increase input costs for essential materials like fertilizer just as farmers prepare for planting seasons. She cited potential cost increases per acre for corn and soybeans due to a tariff on Canadian potash.

The discussion underscored ongoing concerns within agricultural communities regarding trade policies and their implications for both local economies and broader market dynamics.

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