Report: Mexico, Canada Steel and Aluminum Retaliation Will More Than Offset USMCA

While improved market access via the U.S.-Mexico-Canada Agreement (USMCA) will lead to gains in U.S. agriculture exports, those gains will be more than offset by the retaliatory actions taken by Mexico and Canada relative to U.S. steel and aluminum import duties, according to a study released by the Farm Foundation.The boost in U.S. ag exports is pegged at $450 million, primarily for dairy and poultry, said the report conducted by Purdue University. The retaliatory actions by Mexico and Canada "will cause U.S. agricultural exports to decline by $1.8 billion," the report said.Combined with retaliatory tariffs by China and others that hit US ag goods, the report said the U.S. "would see a decline in agricultural exports of $7.9 billion, thus overwhelming the small positive gains from USMCA."