By Scout Nelson
Ongoing tariff tensions between the United States, Canada, and Mexico are raising questions about the future of agricultural trade, especially in states like South Dakota. Representative Dusty Johnson sees this moment of conflict as an opportunity.
South Dakota exported over $5 billion in domestic agricultural goods in 2022, according to the US Trade Representative. While that number is high, Johnson believes it should be even higher with better market access.
“Canada has treated us poorly regarding dairy. Mexico has treated us poorly with regards to corn," Johnson said. "I’m hopeful that this uncomfortable moment of conflict actually gets us to a much better place where people are buying more agricultural goods. That needs to be the goal.”
Tariffs imposed by the US on steel and aluminum imports are partly intended to boost domestic manufacturing. However, recent moves have also been linked to immigration and drug policy enforcement.
The Trump administration previously imposed tariffs on Canada and Mexico, stating the action was necessary to stem the flow of migrants and fentanyl into the country.
Johnson noted that anti-trade sentiments are growing in both major political parties in the US. He referenced past trade successes as proof that strategic negotiations can benefit the country.
“But what we know is when Donald Trump renegotiated USMCA that created tremendous American prosperity. It created American jobs. It increased exports. It opened markets that had previously not been open to us," Johnson said. "So, I would say to those folks who feel like trade isn’t good for America—see what Donald Trump did with USMCA and understand how powerful market access can be.”
Meanwhile, the Federal Reserve has raised its inflation outlook, noting that tariffs are playing a role. Farm income in the Upper Midwest has declined since 2022, and 2025’s outlook remains uncertain.
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Categories: South Dakota, Business, Government & Policy