Trump Targets Canadian Fertilizer, Could Food Prices Rise?
US President Donald Trump has said he is prepared to impose very high tariffs on fertilizer imported from Canada. According to Trump, much of the fertilizer used in the US currently comes from Canada. With high tariffs, he hopes American companies will increase domestic fertilizer production, thereby reducing the US's dependence on other countries.
Simply put, tariffs are like an additional tax on imported goods. If tariffs are increased, Canadian fertilizer will become more expensive when imported into the US. As a result, locally produced fertilizers made by domestic companies could become more attractive, as they could be competitive with, or even cheaper than, imported fertilizers. This is what Trump refers to as a way to "encourage production here."
However, such a policy will impact not only fertilizer producers but also farmers and the wider community. If imported fertilizer becomes expensive and domestic production is unable to meet demand, fertilizer prices in general could rise. Farmers who use fertilizer will bear higher production costs, and ultimately, the price of crops or food could also rise.
On the other hand, Canada, as a fertilizer supplier, could suffer losses due to reduced exports to the US. Trade relations between the United States and Canada could also become strained if Canada feels disadvantaged and retaliates with other policies against US products. So, while Trump's goal is to strengthen domestic production, this high tariff policy also carries risks for farmers, consumers, and the trade relationship between the two countries. (az)
Source: Newsmaker.id
