NDSU report finds IEEPA tariff escalation is reshaping U.S. agricultural trade

U.S. effective tariffs on agri-food products have nearly quadrupled in 2025, from an average of 4% to 15%, following the implementation of new measures under the International Emergency Economic Powers Act, according to the August 2025 edition of the NDSU Agricultural Trade Monitor, released by North Dakota State University’s Center for Agricultural Policy and Trade Studies.

The report outlines how these historic increases, which reach up to 50% for certain products, are altering trade flows for both food and agricultural inputs. The analysis shows that while headline tariffs are steep, exemptions under the United States –Mexico–Canada Agreement and negotiated arrangements with key partners like the European Union are significantly tempering the impact on many imports.

Still, products from non-exempt suppliers, such as Brazilian coffee and beef at 50%, Swiss coffee at 39% and Chinese packaged food at 30%, are facing sharp cost increases. For agricultural inputs, average tariffs have risen from 1% to 12%, with pesticides and machinery parts seeing the largest jumps.

“While the nominal tariff hikes are historic, exemptions and trade deals are cushioning the blow for many U.S. importers,” said Sandro Steinbach, director of the Center. “However, the differentiated impact across products and suppliers means some sectors will face higher costs and greater market uncertainty.”

The report also notes that total U.S. agricultural exports in June 2025 were 3% higher than a year earlier, but year-to-date values remain 2% lower. Exports to China have fallen 53%, with soybeans, beef, and poultry shipments at five-year lows.

Access the full report online. For additional information, contact Steinbach at sandro.steinbach@ndsu.edu.