On April 2, 2025 President Trump imposed a reciprocal and universal tariff of 10% on all products and trading partners effective midnight, April 5. This move is the latest in a sweep of tariff-related plays made by the White House. Additionally, even higher rates will be applied to America’s top trading partners effective on April 9. See the full list of reciprocal tariffs here and here.
Global trade and international demand is a crucial market for corn producers. Approximately 15% of America’s corn crop is exported every year. In 2024, American farmers exported $66 billion worth of grain, while the country imported only $1 billion in grain. This created a $65 billion net trade surplus on bulk grain shipments, which is a huge win for the American economy.
On top of tariffs, the USTR recently issued a proposal that would impose steep restrictions on Chinese operators and U.S. carriers using Chinese-made ships, including fees up to $1 million per U.S. port call for Chinese operators and fees up to $1.5 million per entry for all Chinese-built vessels. If this proposal is accepted, 2/3 of corn exports would be subject to the steep fees. We expect these fees will translate to an increase in transportation costs, which will certainly be passed along to the farmer. Corn farmers are looking at the potential for $.30 to over $.60 a bushel in increased costs – these costs mean a reduction in the price they will ultimately be paid for their corn. The National Corn Growers Association has requested a bulk-shipment exemption to this fee.
These circumstances combined with the ongoing uncertainty of the market has left corn producers tightening our belts. Ohio Corn & Wheat urges the Trump administration to find a swift solution to this issue and give American’s grain producers some market stability.
