U.S. dairy industry sees a positive side to new tariffs. Grain and soybean farmers share a pessimistic outlook.

Graphic by Lindsey Pound, Dairy Herd Management

The U.S. dairy industry says the new reciprocal tariffs announced by President Trump could end in a "net positive" for the sector, reports Rhonda Brooks of Dairy Herd Management.

Gregg Doud, President and CEO of the National Milk Producers Federation, issued a statement supporting the tariffs: "'Tariffs can be a useful tool for negotiating fairer terms of trade. . . .We are glad to see the administration focusing on long-time barriers to trade that the European Union and India have imposed on our exports. If Europe retaliates against the United States, we encourage the administration to respond strongly by raising tariffs on European cheeses and butter. We also appreciate the president’s recognition of the sizable barriers facing U.S. dairy exports into the Canadian market.”

Krysta Harden, president and CEO of the U.S. Dairy Export Council, "gave added perspective on the new tariffs being rolled out, " Brooks adds. Harden said, "A firm hand and decisive approach to driving changes is most needed with the European Union and India to correct their distortive trade policies and mistreatment of American agriculture."

A partial list of the countries and their tariff percentages to be levied include:

• China - 34%
• European Union - 20%
• Vietnam - 46%
• Taiwan - 32%
• Japan - 24%
• India - 26%
• South Korea - 25%
• Thailand - 36%
• Switzerland - 31%
• Indonesia - 32%

Grain and soybean farmers have a gloomier outlook on how the tariffs might alter their market share and future income. "During the 2018 trade war with China, U.S. agriculture experienced more than $27 billion in losses, according to the American Soybean Association," Brooks adds. "The association says the U.S. has yet to fully recover its former market share of soybean exports to China, the world’s No. 1 buyer of the commodity."

North Dakota farmer and rancher Chase Dewitz weighed in on the "pain" the new tariffs will cause agribusiness stakeholders. He told Brooks, "Everyone says, ‘this needs to be fixed,’ and then on the backside they say, ‘as long as it doesn’t affect me.' Well, it’s going to affect everybody.”