Trump’s tariff threat raises alarm in Michigan’s $104B agriculture industry

SPARTA, MI — President Donald Trump’s threat to impose 25% tariffs on products from Canada and Mexico has created big economic uncertainty, including in Michigan where many farmers are wondering what a trade war could mean to their bottom line.

That uncertainty was on display Thursday, when U.S. Sen. Elissa Slotkin, D-Holly, hosted a discussion at May Farms in Sparta northeast of Grand Rapids. Slotkin touched on a variety of topics, including tariffs, the push for a new farm bill, and budget cuts at the U.S. Department of Agriculture.

Afterwards, MLive spoke with four farmers about the tariffs and how, if enacted, they would affect their operations.

Here’s a look at what they had to say:

First, a little background

Trump campaigned on tariffs, and he has used an assortment of reasons to justify their use, including strengthening American manufacturing and leveling the playing field with trade partners.

The White House has also described them as a tool to reduce the number of people entering the country illegally from Canada, Mexico and China, and to stem the flow of fentanyl and other drugs entering the U.S., according to the White House.

In February, Trump imposed his first set of tariffs: 20% on products imported from China.

Later, in early March, he slapped 25% tariffs on Canada and Mexico but paused most of them days later amid an outcry from the auto industry and others.

Trump is expected to revisit the tariffs on April 2.

All of which has prompted the threat of retaliatory tariffs from Canada and Mexico. China has already imposed 15% retaliatory tariffs on U.S. agriculture products, the Associated Press reported.

In West Michigan, some farmers are worried, and Slotkin warned of a “dramatic” impact if a trade war erupts between the U.S., Canada and Mexico.

“I had soybean producers and food producers tell me if those tariffs go into place, I’m out of business,” she told reporters Thursday. “We don’t want to be putting anyone out of business. So it’s pretty extreme for some of our farmers.”

Michigan’s agriculture industry contributes more than $104.7 billion annually to the state’s economy, according to a 2023 report by the Michigan Department of Agriculture and Rural Development. Dairy products, corn, soybeans, apples, asparagus, potatoes and cherries are among the state’s biggest crops.

Merle Langeland, Owner of Langeland Farms in Coopersville

After Slotkin’s event, when asked to share his thoughts on tariffs, the 69-year-old dairy farmer posed a question: “If you own a hardware store, isn’t the number one rule the customer is always right?”

“Mexico and Canada are our number one customers,” Langeland said. “Why are we pissing them off?”

He said he worries about the financial pain tariffs could bring.

“Nineteen percent of our milk is exported, Mexico being our No. 1 customer,” Langeland said. “If all of a sudden they quit buying, the price is going to tank.”

He added, “I’m sure there’s two sides to the argument. But my feeling is it’s probably not a good idea.”

Langeland’s farm has about 1,000 cows, as well as 2,000 acres of corn and 500 acres of soybeans.

Fred Rasch, Owner of Green Tree Orchards in Sparta

Rasch, who grows apples and sweet cherries, said he likes the idea of leveling the playing field between the U.S. and its trading partners.

“If we’re not getting fair trade, it’s not good for anybody,” he said.

Rasch, a fifth generation apple grower, said he has friends in Canada, and that he hires good, legal workers from Mexico. For him, tariffs are not a way to “beat the hell out of the neighbors.”

Rather, he said he views them as a tool to strengthen America.

“It’s for my kids’ generation, my grandkids, and my great grandkids,” Rasch said. “It’s for the future of this country — bottom line, and most people don’t look beyond their nose.”

Is he worried about the financial impact?

“It’s going to be a short-term hurt no matter who you are,” he said. “But long term, I think it’s a benefit.”

Jim May, owner of May Farms in Sparta

May, who hosted Thursday’s gathering with Slotkin, said the prospect of tariffs is “scary.”

“To me, it’s scary because you don’t know what’s going to happen,” said May, 74, who farms corn, soybeans and apples. “I think if somebody went to the casino, his odds would be better, because we don’t know what’s going to happen.”

While the impact of tariffs is uncertain, he said he worries they will raise costs and hurt farmers financially. He said farmers are already facing lots of regulatory and business challenges, and he doesn’t want to see younger farmers leave the profession because of financial pain caused by tariffs.

“Is the next generation going to take over?” May asked. “Can they afford to take over? Or are they just going to throw in the hat and say ‘I’m out of here, I don’t want it.‘”

John Finkbeiner, owner of Twin Pines Farm in Caledonia

A lifelong farmer, Finkbeiner, 74, has seen a lot of state and federal policy changes over the years. Currently, the “thing that scares me the most is probably the tariffs,” he said, when asked about his takeaway from Slotkin’s event.

“We have to export so much from my farm,” said Finkbeiner, who grows corn and soybeans. “Probably 80% has to be exported so I can stay in farming.”

He said he sells his corn and soybeans to a local co-op and a turkey farmer. Like any business owner, he said he doesn’t want to lose money because of the tariffs.

But he says he’s staying hopeful.

“I’ve been doing this my whole life, you learn to go with the flow,” Finkbeiner said. “I just thank God I can get up in the morning and feel up to it. I’ve done it my whole life, I couldn’t think of doing anything else.”