Colorado agriculture producers brace for tariff impacts
Canada has announced a 25% tariff on $155 billion of U.S. goods. Mexico has vowed retaliatory tariffs but has not specified which U.S. goods would be impacted.
With American tariffs against Mexico and Canada, and those nations' potential tariffs against the U.S., Colorado agriculture producers could be impacted in a number of ways.
Agriculture is a huge part of Colorado's economy. Cattle is Colorado's top commodity, followed by dairy and corn. Canada is the number one export market for Colorado, and Mexico is number two.
"I've been in business for 40 years. I grow Olathe sweet sweet corn, which I started 40 years ago. I raise cows. I have about 250 head of mother cows," said John Harold, owner of the Tuxedo Corn Company.
Tariffs with neighboring countries are bringing uncertainty to Colorado's long-running agriculture industry.
"The concern is, are we going to be able to continue in Mexico and the United States, or is the tariff going to take the profit out of the operation?" Harold asked.
Harold grows sweet corn in Olathe, Colorado, in the summer and in Mexico in the winter.
"My biggest concern is the farm in Mexico. We're right in the middle of harvest," said Harold. "We're probably 60% harvested. So what do I do with the other 40% if I can't sell it because the price is too high? I can't compete."
Most of that Mexican-grown corn is imported into the U.S. and sold in supermarkets. But Harold worries a 25% tariff on all Mexican goods will hurt his bottom line.
"The problem is, I have contracts. What are those contracts going to say when my costs go up 25%?" said Harold. "The price gets so high, people don't buy it."
Harold has spent decades planning around the weather and supply chain issues but says all he can do now is wait for this impending storm to hit on Tuesday.
"I'd love to have more information. I'd be honest with you, I'd like to have a lot more information before it happened, not after it happens," Harold said. "The administration, I don't think, cares much about things like that. They don't understand planning. They don't understand the effect of what they do on small businesses or even corporations… I wish they would really get a job in a supermarket, and they might understand a little better how the system works."
Harold also worries about the impact of Trump's immigration policy on the migrant farm workforce.
"Because we grow sweet corn, we hand-pick all our sweet corn. So I bring about 180 people every year from Mexico up here to hand-harvest Olathe sweet sweet corn," Harold said.
Harold doesn't export his calves to Canada, so he's not worried about Canada's retaliatory tariffs on U.S. goods, the first phase of which will take effect Tuesday.
But they could definitely impact other Colorado producers. Colorado exports more than $420 million in animal meats to Canada each year. The second phase of Canadian tariffs is expected to include products like beef, pork, dairy, and certain fruits and vegetables.
