The Trump administration moved on Feb. 1 to place a 25% tariff on goods imported from Canada and Mexico. A couple of days later, the president agreed to a 30-day pause as the U.S. continues to negotiate with the two countries.
On Feb. 3, the Trump administration imposed a 10% tariff on specific goods from China. China immediately placed retaliatory tariffs on certain goods from the U.S.
So far, corn and ethanol have not been targeted for retaliatory tariff efforts. Kentucky Corn is monitoring the situation and working to highlight how tariffs could hurt growers while emphasizing the need for new market development overseas.
In 2023/2024, more than five billion bushels of corn and corn products, including ethanol, distiller grains, and red meat and poultry, were exported representing about one-third of total U.S. corn production.
Ethanol is another significant agricultural export for the U.S., with key international markets driving its growth. In 2023, the top destinations for U.S. ethanol exports by value included Canada, which received $1.74 billion worth of ethanol, followed by the United Kingdom at $409.92 million, and the European Union at $333.35 million.
For Kentucky corn farmers, who rank 13th in the nation for corn exports, the impact of these tariffs is extensive. In 2022, Kentucky shipped $3.3 billion in domestic agricultural exports. The state is heavily reliant on global markets for export sales, which in turn support a vital agricultural economy.
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