US government is reportedly considering exemptions for certain Canadian agricultural products, such as potash, from President Donald Trump’s 25% tariffs.
The potential move follows pressure from American lawmakers who warn the tariffs could harm US farmers and increase food prices.
According to Bloomberg, the Trump administration is debating whether to lift tariffs on agricultural imports critical to American farming, including potash, which is a key ingredient in fertilizer.
US Agriculture Secretary Brooke Rollins told the media this week that “all options are being evaluated” to address concerns about rising costs.
Republican leaders, including House Agriculture Committee Chair G.T. Thompson, have asked Trump to exclude agricultural inputs from the tariffs, arguing they risk disrupting US crop production and raise food prices.
Trump suspended tariffs on automobiles and auto parts from Canada and Mexico, that decision announced on March 5, followed similar appeals from auto industry groups.
Analysts caution that imposing tariffs on farm-related imports could increase the already high food prices.
Canada supplies over 80% of US potash imports, which farmers rely on for fertilizer.
Any supply disruption might delay planting or raise costs for consumers.
No final decision has been made and the White House has not commented on the reports.
If approved, exemptions could ease tensions with Canada, which has criticized the tariffs as harmful to cross-border trade.
The 25% tariffs on thousands of Canadian and Mexican goods were part of Trump’s pledge to prioritize US manufacturing.
However, the exemptions under discussion signal a possible compromise to protect the agricultural sector, which is vital to many states that supported Trump’s 2024 election campaign.
Canadian officials have not yet publicly responded to the potential exemptions.
The federal government previously called the tariffs “destructive” and vowed to defend Canadian industries.