Donald Trump flags tariffs on agricultural imports, urges US farmers to ‘have fun!’

US President Donald Trump says tariffs on agricultural imports will take effect on April 2, stoking fears of a political fallout for farmers reliant on Australia’s biggest boxed sheep and beef export market. Mr Trump’s comments — made on X overnight Monday — came after he announced 25 per cent tariffs on goods from Mexico and Canada would take place within hours that day. He also reaffirmed he would boost tariffs on Chinese imports to 20 per cent. Nearly a third of Australia’s boxed beef and sheep meat is sent to the US, with both markets worth more than $US1 billion ($1.6b) last year. In his post to X, Mr Trump told “great farmers of the United States” to “get ready to start making a lot of agricultural product to be sold INSIDE the US”. “Tariffs will go on external product on April 2. Have fun!” Mr Trump did not specify what products would be subject to or exempt from the tariffs. Agricultural analyst Andrew Whitelaw, co-founder of Episode 3.net, said a tariff of 25 per cent would wipe more hundreds of millions of dollars from the beef and sheep trade. “Based on the five-year average trade, a 25 per cent US tariff on Australian beef and sheep meat would cost exporters $415 million annually,” he said. “This could drive up prices, disrupt trade flows, and hit Aussie farmers hard.” WAFarmers chief executive Trevor Whittington said farmers still rattled after China’s three-year tariffs on Australian barley, lobster, wine and beef — lifted last year — were watching the situation closely. “We are on the receiving end last time and it wasn’t very pleasant,” he said. “The Federal Government is talking about increasing (boxed) lamb exports as it pushes on with its plan to ban live sheep exports, and now has a large question mark over it. “Farmers are watching this pretty closely. “Our biggest worry has to be that this spirals out of control into a massive trade war and everyone loses.” Myalup cattle juggernaut Geoff Pearson said a 25 per cent tariff would “kill” farmers’ access to the US market. Mr Pearson and his wife Marissa run 8000 beef breeding cows in a herd of about 20,000, including backgrounding and feedlot cattle. “It would be silly of Trump to contemplate putting a tariff in on Australia boxed meat,” Mr Pearson said. “He has to understand that the US has had declining cattle numbers in recent years and while they are in herd rebuilding phase, they need our boxed meat.” Mr Pearson, who is also the WAFarmers livestock council president, said it would be difficult for the US to justify a tariff on Australian boxed beef and sheepmeat. “We are in a trading surplus with the US,” he said. “It would be negative if we had a tariff imposed on us but we hope that this wont happen. “But there is no way we could handle a 25 per cent tariff… it would kill our market.” Mr Whitelaw said while Australia could find new markets for boxed sheep and beef, prices would almost certainly be discounted and exporters would face more competition. Tariffs could also cause a decline in the Chinese economy, which would then have a flow-on for Australian agriculture. “The US needs Australian beef and sheep to meet consumer demand,” he said. “The US will either need to pay the increased tariff or reduce demand ... we can find other markets, but these may become discounted. “China is an obvious choice for increased trade, but with its economy struggling, demand might drop.” The US was the top market for Australian beef, lamb and goat meat exports in 2024 and a key factor in what was a record year for red meat exports. Australian beef exports to the US in particular surged 60 per cent to 394,716 tonnes. Its insatiable appetite for Australian beef in particular shows no sign of waning any time soon, with the US nearly solely responsible for a beef export boom in January after importing 22 per cent more for the month, year-on-year. China’s commerce ministry on Tuesday vowed countermeasures against Washington’s decision and urged the US to “immediately withdraw” its tariffs, which it described as “unreasonable and groundless, harmful to others.” The state-backed Global Times newspaper earlier said Beijing’s countermeasures would most likely target US agricultural and food products.