How will tariffs impact NC farmers?

High tariffs on all countries with large trade deficits with the United States went into effect on Wednesday but were almost immediately rolled back to 10% by President Donald Trump, who also called for a 90-day pause. Many lawmakers and farmers are concerned about the long-term impact of tariffs on the U.S. economy.

“Feeds and minerals that go into the animals I raise and then also the products that I purchased from other livestock farmers for resale all are impacted by tariffs,” Mike Jones, owner of MAE Farm Meats, told the Carolina Journal. “What happens is the suppliers of these commodities are mostly dominated by large corporations that move resources on a global scale.”

If a commodity is in short supply in the United States and must be imported, a tariff is applied—raising costs for farmers. These commodities may include minerals, soybean meal, or corn. Jones noted that at times, there is a shortage of corn and soy on the East Coast, and shipping it from South America by barge is cheaper than bringing it from west of the Mississippi River.

Some lawmakers, however, feel that tariffs will have a positive long-term impact on the US economy, despite the short-term pain.

“In my opinion, other countries have taken advantage of US trading policies for many decades,” state Rep. Jimmy Dixon, R-Duplin, told the Carolina Journal. “In the first Trump administration, we got a feel for the effects of increasing tariffs. I think, on balance, we realized a net positive as a result. For sure, other nations targeted the agriculture sector as a ‘soft underbelly’ for retaliation.”

Trump recently declared a national emergency, asserting that the nation’s economic security is reflected in the persistent annual U.S. goods trade deficits, which have increased by 40% over the past five years and reached $1.2 trillion in 2024.

“We in the farming community saw the long-range benefits as manageable and beneficial above the temporary pain,” continued Dixon. “I think President Trump has a much better feeling about how to improve US trade policies than he had in his first term. I suggest supporting his tariff policies will improve the US economy over the long haul.”

But Jones argues that tariffs harm farmers not just in the short term by raising input costs, but also over time.

“A lot of American soy and corn producers move their product through the Mississippi River, and it goes into the global trade,” continued Jones. “If other countries put tariffs on American commodities, then American grain and soy farmers might be reluctant to raise that crop. And if their fertilizer inputs are higher, they might be reluctant to raise it [the crop].”

Increased costs could lead farmers to reduce the amount of a given crop they are planting because they decide it is not worth the risk, according to Jones. This could lead to a shortage of domestic grain, forcing the US to import at high tariffs. Farmers may also abandon certain commodities altogether, opting instead for other crops and potentially causing distortions in the agricultural market.

“I’m worried that the retaliatory effects of tariffs will negatively impact North Carolina’s farmers,” Jon Sanders, director of the Center for Food, Power, and Life at the John Locke Foundation, told the Carolina Journal. “Higher prices imposed on North Carolina’s agricultural exports will mean fewer sales, harming the industry’s bottom line and impacting our farmers and their employees. History is replete with examples of tariffs leading to higher and higher tariffs between nations, harming producers and consumers and creating economic woes that can be solved only by freeing trade from such constraints.”

Tariff War with china

Last month, China announced plans to impose a 10% tariff on North Carolina exports, including sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables, and dairy products. This is in addition to a 15% tariff on cotton, corn, wheat, and chicken. 

In 2024, North Carolina ranked as the 15th largest state exporter of goods. That year, the state’s goods exports totaled $42.8 billion, reflecting a 36% increase, or $11 billion, from its 2014 export level, according to data from the Office of the US Trade Representative. Goods exports comprised 5.5% of North Carolina’s GDP in 2023, the latest data available. In 2022, North Carolina’s goods exports supported an estimated 145,000 jobs.

Nationally, jobs supported by goods exports are estimated to pay up to 18% more than the national average. In 2023, North Carolina was the sixth-largest exporter of goods to China at $5.9 billion, according to a report from the US-China Business Council. 

On Wednesday, China’s tariff on US goods was raised from 34% to 84%, reported CBS News. This is in retaliation for Trump’s hiking the import tariff on Chinese goods to 104%.

“The tariffs will have both a professional and personal impact on me and my family,” concluded Jones. “Tariffs are a valid form of taxation and are a useful tool to protect vital domestic industries. However, tariffs have to be carefully managed and should be handled by Congress.”

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