Investing.com -- U.S. President Donald Trump is now said to be contemplating an exemption of specific agricultural products from tariffs enacted on Canada and Mexico, Bloomberg News reported.
Agriculture Secretary Brooke Rollins told Bloomberg that the administration is considering all possible options and expressed optimism about the potential for providing relief to the agricultural sector.
Rollins (NYSE:ROL), while speaking at the White House, stated that specific exemptions and carveouts- such as for potash and fertilizer imports- are yet to be determined.
The U.S. relies heavily on Canada for imports of potash and potash-based fertilizers. Government data showed that at least 90% of potash consumption volume in the U.S. is fed by imports, with 80% of all potash coming from Canada.
The U.S. on Tuesday slapped 25% trade tariffs on Canada and Mexico, but later relented in allowing automakers a one-month exemption to comply with the trade duties, following pleas from several automakers.
Lawmakers from states with heavy exposure to the agricultural industry were also seen clamoring for tariff exemptions for fertilizers and other crucial imports.
Trump in a Tuesday address to Congress acknowledged that his latest round of tariffs will cause some disruptions, especially for farmers.
But Trump said reciprocal tariffs against major U.S. trading partners were coming on April 2, as were planned tariffs on agricultural imports. The U.S. President had also imposed 20% tariffs on China on Tuesday.
Canada, China, and Mexico announced a host of retaliatory trade measures against the U.S., potentially marking the start of a renewed global trade war. Canada in particular warned it could add a surcharge to U.S. energy exports if Trump's tariffs persisted.
China imposed import tariffs on several U.S. agricultural goods, heralding more pain for American farmers.