LANSING — Michigan’s agriculture industry is bracing for the impacts of President Trump’s tariffs on Canada and Mexico, which they warn could disrupt trade and increase consumer costs.
Growers would likely be most directly impacted by tariffs on potash, a potassium-rich material whose American market is almost entirely controlled by Canada.
According to the US Geological Survey, the US imports more than 90% of its potash, with nearly 80% of that coming from Canada.
“Potash is one of the three major fertilizer needs for most crops,” said Loren Koeman, lead economist for the Michigan Farm Bureau. “Nitrogen, phosphorus and potassium. Potash is a potassium piece, and so it’s going to be required for most crops in one way or another.”
Under the president’s most recent public proposals, potash would be subject to a 10% tariff, rather than the 25% surcharge that’s set to be placed on most items.
John Dindia, co-owner of Lakeview Hill Farm in Traverse City, said fertilizer prices have already increased in recent years, leaving his business with lower margins.
“Potentially having even higher input costs without an increase in the market price is quite scary, and it’s going to be detrimental to a lot of farmers,” he said.
Dindia said some farmers may have to raise prices to keep up with rising costs.
Coupled with more expensive produce from abroad, consumers could see higher grocery prices within days of any tariffs going into effect.
“Nobody wants to charge a lot for food, but we also need to make a living as farmers,” Dindia said.
Experts also shared concerns about a potential drop in Michigan’s exports to other countries, many of which have promised to place equivalent tariffs on American goods.
Michigan exports more than $1 billion a year to Canada in agricultural products and processed foods, close to five percent of Michigan’s total exports Up North.
“When we’re able to trade and export, that results in economic benefits here back home, in small towns and rural communities, where agriculture is a leading economic driver, and frankly, in our cities as well,” said Chuck Lippstreu, president of the Michigan Agri-Business Association. “Canada is our number one market for Michigan agricultural and food exports, and we bring a number of things back across the border from Canada that Michigan farmers use to grow crops.”
According to the USDA, a state selling one dollar in exports translates to $1.50 in economic activity for that state.
Michigan’s agricultural exports around the world had an impact of nearly $4.5 billion in 2024.