BOISE- Dairy farmers are among those feeling uneasy after the latest development in the ongoing trade wars.
In response to aluminum and steel tariffs President Donald Trump put on Mexico, Canada and the European Union, Mexico is responding with its own tariffs targeting agriculture. The taxes will impact two of Idaho's biggest exports: dairy and potatoes.
“We're in a time where dairy farmers are already hurting because of low prices,” said Karianne Fallow, CEO of Dairy West. “Adding on to that would have really negative impacts.”
“Agriculture products are often targeted when it comes to any kind of retaliation,” said Laura Johnson, Bureau Chief for the Idaho State Department of Agriculture. “That's really hurtful, certainly, to our producers.”
Idaho is the third-largest dairy producing state in the country, and dairy is Idaho's number one agricultural export.
“Our dairy exports to Mexico are conservatively estimated at $25.9 million,” Fallow said.
“One in seven tankers of milk ends up being processed into a product such as cheese or whey protein or butter or milk powder that is exported,” Johnson said.
The state Department of Agriculture says Mexico is one of Idaho’s top export markets. Farmers in Idaho are concerned because of the immediate loss of sales and the potential long-term losses. The tariffs put a 20 to 25 percent tax on cheese and cheese products, and 20 percent on processed potato products.
“When we have tariffs that our producers face from 20 percent, 25 percent, even 10 percent,” Johnson said. “It makes it extremely difficult for our producers compared to other countries that are facing a zero percent duty.”
Meaning farmers in Idaho start to lose their claim in the market, and that could have long-term impacts.
“When you lose a customer it's really hard to get that customer back, so there's the immediate lost sales,” Johnson said. “Hopefully, when trade wars are resolved and things go back to where they were, it still takes a long time for those producers to get those customers back.”
“We've worked really hard to create strong market share with Mexico,” Fallow said. “To potentially threaten that has big concerns across the dairy community.”