The United States is going back and forth with Canada and Mexico on tariffs and retaliatory tariffs, which could affect South Dakota exports.
South Dakota’s lone congressman, Dusty Johnson, said the tariff conflict should be used to gain more market access.
According to the US trade representative, in 2022 South Dakota shipped over $5 billion in domestic agricultural exports in 2022.
Johnson said that’s a huge number, but it needs to be higher.
“Canada has treated us poorly in regards to dairy. Mexico has treated us poorly with regards to corn," Johnson said. "I’m hopeful that this uncomfortable moment of conflict actually gets us to a much better place where people are buying more agricultural goods. That needs to be the goal.”
According to the Minneapolis Federal Reserve, farm incomes have fallen consistently in the Upper Midwest since the end of 2022. They say the agriculture outlook for beginning of 2025 is pessimistic.
The US has imposed tariffs on all steel and aluminum entering the country, partly to help onshore factory jobs. The Trump Administration has indicated tariffs against Canada and Mexico are in relation to stemming the flow of migrants and fentanyl into the US.
Johnson said the US is in a more populist era where anti-trade views in both mainstream American political parties are more prevalent than they were 20 years ago.
“But, what we know is when Donald Trump renegotiated USMCA that created tremendous American prosperity. It created American jobs. It increased exports. It opened up markets that had previously not been open to us," Johnson said. "So, I would say to those folks who feel like trade isn’t good for America—see what Donald Trump did with USMCA and understand how powerful market access can be.”
Earlier this week, the Federal Reserve raised its expectations for inflation, citing tariffs playing a role.
