BILLINGS - The talk of tariffs continues to dominate in Washington D.C.
The United States and Canada appeared to be dialing back some threats Tuesday night after discussions between the two countries.
That’s after President Donald Trump said he would raise tariffs up to 50 percent starting Wednesday.
One of the bigger industries watching what is happening is the beef industry.
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Turk Stovall is the 1st vice president of the Montana Stockgrowers Association and is hearing from Montana ranchers.
He says feeder cattle out of Montana often cross the border to Canada, get fed and finished, and come back to a U.S. processor.
He says it is not known if a tariff will be applied each time the product crosses the border.
“I was talking with a producer on the high-line who was selling a large string of cattle into Canada,” Stovall said. “And due to the announcements and due to the uncertainty, it stopped that sale.”
And Stovall also is worried about the impact tariffs could have.
“Depending on how they're applied and what products they're applied to, (tariffs) can have a negative effect of that (feeder cattle) system,” Stovall said.
But there are two sides to the tariff debate.
Bill Bullard, R-CALF USA C.E.O., says tariffs would help the beef industry to potentially expand production.
“If you put a tariff on and incentivize domestic production, you will increase jobs,” Bullard said. “You will increase tax payments. You will increase economic activity in rural America and all across America.”
According to the United States Department of Agriculture (USDA), the U.S. is expected to import $219.5 billion in agriculture products in 2025 while exporting $170.5 billion.
Tariffs, Bullard argues, would potentially help that $59 billion trade deficit.
“These products are coming in cheaper than our domestic producers are able to produce them for,” Bullard said. “And what the multinational meat packers have been doing is importing this cheaper product.”
Bullard says that trade deficit means the U.S. relies heavily on other countries for food and that affects food security.
The president's executive order states the U.S. has the world's largest trade deficit at $1 trillion and tariffs are a tool to help with national security.
“We certainly agree with the President that the United States needs to begin implementing tariffs, using tariffs as a legitimate economic tool,” Bullard said.
But others like Stovall say while he understands the strategy, he's not sure tariffs will address national security.
“If this administration views that the tariffs are better for us in the long term, then I guess so be it, and we are going to have to work through that,” Stovall said.
Two takes on tariffs. One area where both of these men can agree is that other issues will continue for Montana farmers and ranchers.
“They are already faced with so many other challenges,” Stovall said.
“Tariffs are not the silver bullet,” Bullard said. “But they're a very important step in the right direction for America.”
