Agrochemicals in the Crossfire: Trump, China, and the Future of Trade
Since “Liberation Day” on April 2, 2025, an enormous amount of activity has impacted agrochemical trade in the U.S. Uncertainty among importers has caused significant concerns, writes market expert Jim DeLisi at CropLife’s sister brand, AgriBusiness Global.
Fentanyl tariffs on China remain at a flat rate of 20% and are not eligible for duty drawback on exports. There are also Fentanyl tariffs on Canada and Mexico of 25% for imports that do not meet the USMCA rules of origin.
Reciprocal tariffs on China are currently set at a rate of 10%, with many exceptions. While the exceptions list has been stable, the rate has been as high as 125%.
The Office of the United States Trade Representative (USTR) has been working with numerous countries to try to negotiate deals. The lever that is being used is the idea of tariff reciprocity, which is designed in theory to offset the tariffs and non-tariff barriers to U.S. exports in each country.
A list of these rates is available here. The current rate is 10% for all countries, except for China, Canada, and Mexico (for products that meet USMCA rules of origin). In theory, while there may be some exceptions for countries that are making a good faith effort, any country that does not make a deal deemed to be satisfactory to President Trump by July 8, will again be subject to these levies.
Court Actions
Three different courts have ruled that the President’s actions are not permitted by the statute he referenced. It is likely that the only one of these actions that matter is the Court of International Trade (CIT). Located in New York City, this court was designated by Congress to handle disputes involving international trade. They ruled against this entire program, which would include the fentanyl tariffs (Canada, Mexico, China) as well as the reciprocity tariffs.
The Administration promptly appealed and as of the date of this article, the CIT decision has been held open until the Appeals Court rules. This will likely not happen until arguments are heard, perhaps as soon as July 31.
The other two cases, one in Washington D.C., and the other in California, will likely eventually be folded into this case.
Whomever wins in the Appellate Division will surely appeal to the U.S. Supreme Court, and it is highly likely that a stay will be granted until they rule. It will therefore be close to the end of 2025 before there is a final decree on the legality of President Trump’s actions. If this schedule holds, the Administration will have plenty of running room to accomplish their objectives.
Read more at AgriBusiness Global.
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