South Dakota Farmers React to Tariffs

By Scout Nelson

South Dakota farmers are grappling with the effects of President Trump’s recent tariffs, which have created uncertainty in the agricultural sector. On March 4, 2025, Trump imposed 25% tariffs on imports from Canada and Mexico, as well as an additional 10% on goods from China, leading to fears of economic disruption.

Rodney Koch, a South Dakota farmer, expressed concerns about the immediate financial impact, stating, “(Tariffs) will hurt our pocketbooks, obviously. But will we come out of it better in the long run? That’s the hope.” Similarly, U.S. Sen. Mike Rounds voiced support for a clear endgame, emphasizing that both farmers and politicians are hoping for a positive outcome after a period of uncertainty.

The tariffs resulted in the decline of corn, wheat, and soybean prices, with farmers facing higher costs for machinery and fertilizers due to tariffs on imports from Canada. As Jared McEntaffer, CEO of the Dakota Institute, explained, “One thing the market doesn’t like is uncertainty because uncertainty means risk.” This has led to reduced spending by farmers, further affecting the economy.

Though tariffs primarily target imports, they often result in retaliatory measures. This has been evident in the ongoing trade wars, especially with China, a major U.S. soybean buyer. The reduced demand from China has hurt U.S. soybean sales, pushing American farmers to look for new markets.

South Dakota’s agriculture, particularly corn and soybean production, accounts for a significant portion of the state’s economy, with exports heavily dependent on international markets. Canada, Mexico, and China are key trade partners, making the tariffs’ impact even more pronounced. The state’s corn exports alone reached $5.4 billion in 2022, with Mexico being the top importer.

Despite these challenges, many South Dakota politicians are supporting Trump’s strategy, seeing tariffs as leverage for stronger trade deals. However, local leaders, like Scott VanderWal, president of the South Dakota Farm Bureau, urge caution, recognizing the delicate state of South Dakota’s agricultural economy.

In addition, South Dakota politicians continue to advocate for balancing strong trade agreements with the needs of the state's farmers. As tariffs remain a tool for negotiation, farmers and policymakers will continue to monitor their impact, hoping for a more stable and profitable future.

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