Producers closely following developments as Kansas exports could take hit from tariffs

WICHITA, Kan. (KWCH) – There’s been a lot to follow with the promised rollout of tariffs and what their implementation could mean for U.S. trade with Mexico, Canada and China. If the tariffs go into effect, businesses and consumers are expected to feel the impact with two of Kansas’ biggest trade partners on the receiving end. While many unknowns and changes are unfolding, Canada, Mexico and China have said if the U.S. imposes tariffs on their nation’s goods, they would impose their own. That could impact Kansas’ biggest exports, aviation and agriculture.

For Clearwater farmer and producer Max Tjaden the daily work keeping him busy before the fields are ready includes keeping up with national news and what to prepare for.

“Got up [Monday] morning thinking, ‘Well, okay, [tariffs are] going to go into effect,’” Tjaden said. “The markets were down, not as much as I thought the would be, and then I just looked a little bit and now they’re all up, eight to 16 cents, depending on which grain it is.”

Although the tariffs on Mexico and Canada paused, the United States’ northern and southern neighbors are critical export markets for U.S. and Kansas agriculture. The nation as a whole and the state of Kansas are also sources of imports, including fertilizer from Canada.

“Big agriculture exchange going on, as well as just parts for farm equipment, tractors,” Tjaden said.

2023 Kansas Department of Commerce data shows that Mexico, Canada, Japan, China and South Korea were the top destinations for the state’s exports, aviation parts, meats and grains. The biggest component, which could be targeted if tariffs are placed on U.S. goods.

“What’s unusual about this is President Trump is going after first and foremost, our biggest allies, said Newman University Associate Professor of Management Dr. Larry Straub.

Straub said that if the U.S.’s proposed tariffs go into effect, that’s money that American businesses and potentially consumers will have to pay.

“Businesses sometimes will try to shield consumers from that for a short period or partially, but particularly for a 25% tax, you can’t do that for very long, if at all,” he said.

Tjaden said he can’t remember a significant impact from the tariffs in Trump’s first administration and sees their use now as more of a bargaining tool.

“A big deficit to the advantage of Canada and Mexico and other countries as well, and I think that’s probably what their plan is to get things a lot more equal than it is,” he said.

President Trump said he’s using tariffs to not just affect trade, but also immigration and illicit drugs.

Looking at the impact of tariffs in Trump’s first term, a USDA report from 2022 looked at retaliatory tariffs on US ag that happened in 2018, after the president’s first use of tariffs. The report sad that this led to a reduction in ag exports to the countries issuing the tariffs. For Kansas, that was about $1 billion, a 7% decrease.

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