United States President Donald Trump is considering exempting certain agricultural products from tariffs imposed on Canada and Mexico, the latest move by the administration on Wednesday to offer relief to certain sectors from the sweeping new import taxes.

Agriculture Secretary Brooke Rollins told Bloomberg News that “everything is on the table” and she is “hopeful” that the administration could decide on providing relief for the agricultural sector.

“As far as specific exemptions and carveouts for the agriculture industry, perhaps for potash and fertilizer, et cetera — to be determined,” Rollins said Wednesday at the White House. “We trust the president’s leadership on this. I know he is hyper focused on these communities.”

Rollins was at the White House to meet with Trump and other economic officials to deliberate a path forward. Earlier Wednesday, the Trump administration announced that they are delaying for one month tariffs on automotive imports from Mexico and Canada following pleas from industry executives for more leeway.

The moves come one day after Trump imposed 25 per cent tariffs on the two North American neighbours — the largest U.S. trading partners — part of a broad bid to use import levies to raise revenue and convince companies to move manufacturing back to the U.S. The tariffs have sparked volatility in global markets, with the S&P 500 Index rising over one per cent on Wednesday, rebounding from a two-day slide.

Lawmakers from states with strong agriculture interests have pleaded with the administration to carve out tariff exemptions for fertilizers and other products that are critical for growing U.S. crops.

Trump has pushed ahead with his threats to enact wide-ranging tariffs in his second term, dismissing warnings from economists that the measures risk fuelling inflation and inflaming relations with crucial allies. Retaliatory tariffs have already erased gains this year for corn and soybeans and revenue from cash crops is expected to fall for a third year in 2025.

China has already enacted countermeasures on a range of commodities including soybeans, pork and beef. Canada also has retaliated against about US$107 billion worth of U.S. goods, while Mexico plans to announce its response on Sunday.

Trump earlier this week also said the U.S. would impose tariffs on “external” agricultural products starting April 2. The potential duties come as U.S. food imports balloon, driving the country’s agriculture trade deficit to a record US$49 billion this year.

Trump, during a joint address to Congress on Tuesday night, acknowledged that his tariffs against Mexico, Canada and China — the world’s second largest economy — would cause some “disruption” in the U.S. but said Americans would adjust to those changes and that the levies would help bolster domestic industries.

Despite the delay in auto levies, Commerce Secretary Howard Lutnick earlier Wednesday said that Trump was still moving forward with reciprocal tariffs that would take effect as soon as April 2.

With assistance from Jeff Sutherland

Bloomberg.com