By Blake Jackson
The administration announced a 25% tariff on imports from Canada and Mexico on February 1. However, a temporary 30-day pause was later introduced to allow further negotiations with both countries.
Additionally, on February 3, a 10% tariff was placed on select Chinese goods, prompting immediate retaliatory measures from China on certain U.S. products.
Currently, corn and ethanol have not been affected by these retaliatory tariffs. Kentucky Corn is closely monitoring developments and emphasizing the risks tariffs pose to farmers while advocating for expanded global markets.
During the 2023/2024 marketing year, the U.S. exported over five billion bushels of corn and corn-derived products, such as ethanol, distiller grains, and red meat and poultry. These exports account for nearly one-third of total U.S. corn production.
Ethanol remains a key agricultural export, with international demand driving growth. In 2023, Canada was the top destination for U.S. ethanol exports, purchasing $1.74 billion worth. The United Kingdom followed with $409.92 million, while the European Union imported $333.35 million.
For Kentucky, which ranks 13th nationally in corn exports, these tariffs could have significant consequences. In 2022, the state exported $3.3 billion in agricultural products, underscoring its dependence on global trade.
Kentucky’s 1,590 miles of navigable waterways are vital in transporting 32.4% of the state’s agricultural goods to international markets.
Photo Credit: gettyimages-dale-fornoff
Categories: Kentucky, Crops, Corn