President Donald Trump imposed tariffs on key U.S. trading partners, with some taking effect on August 1 and others taking effect this week. At the same time, ag exports continue to decline.

Tariffs on Canadian goods increased from 25% to 35%. This was prompted by the Trump administration’s accusations about drug trafficking and Canada’s foreign policy. Canada is a major ag trade partner. U.S. agricultural exports to Canada fell 3% through May, while Canadian imports to the U.S. dropped 4%.

Meanwhile, Mexico received a 90-day extension on potential tariffs. The USMCA tariff levels remain in place. Mexico remains the top market for U.S. ag products. Exports totaled $12.3 billion through May. This is down 2%.

Negotiations with China remain stalled. There are no soybean commitments for the upcoming marketing year. This is impacting prices and causing export declines. Soybeans are down 98 cents per bushel since late June. U.S. ag exports to China are down 55% year-to-date.

A national emergency was declared against Brazil. This imposes a 50% tariff on products like beef and coffee. Additionally, a 40% tariff targets goods coming through other countries to bypass tariffs. This is mainly in response to China shipping goods to the U.S. through other countries.

President Trump touted new trade agreements with the EU, Japan, and others involving investments and 15% baseline tariffs.

Read more on the evolving ag trade landscape here.