Apr 8, 2025NPC issues guidance on tariff impacts
Based on information from the Office of United States Trade Representative (USTR) and other currently available data, a leading potato advocacy organization is issuing guidance on tariff impacts.
The National Potato Council guidance includes an understanding that goods compliant with the United States-Mexico-Canada agreement “will continue to see a 0% tariff.”
The Trump administration is applying a 10% base tariff to all trading partners on all products that began April 5, including those with free trade agreements with the U.S. Only the USMCA countries will avoid these 10% tariffs, according to an NPC statement identifying key tariff takeaways.
Beyond the 10% tariff, the administration is applying additional “reciprocal tariffs” on many trading partners beginning April 9. In reality, those tariffs are not reciprocal, but set by determining a country average tariff that is applied to the U.S.
This number was created with a formula not based on specific tariff lines, but instead a general ratio of U.S. trade with that country. The U.S. will then place a tariff of half of that country’s “reciprocal” average on most products. When this “reciprocal” tariff is put in place, it will include the 10% base tariff.
Based on information provided by USTR, USMCA-compliant products are not impacted by this new structure. The language from the organization’s guidance:
For Canada and Mexico, the existing fentanyl/migration IEEPA (International Emergency Economic Powers Act) orders remain in effect, and are unaffected by this order. This means USMCA compliant goods will continue to see a 0% tariff, non-USMCA compliant goods will see a 25% tariff, and non-USMCA compliant energy and potash will see a 10% tariff. In the event the existing fentanyl/migration IEEPA orders are terminated, USMCA compliant goods would continue to receive preferential treatment, while non-USMCA compliant goods would be subject to a 12% reciprocal tariff.
Under this system, EU fries will receive a 20% tariff (up from 8%), while the tariff on China fries would increase from 53% to 79%, according to the statement.
China announced 34% retaliatory tariffs on some U.S. goods.
“It is likely that more retaliation announcements will roll in over the next few days from other trading partners,” the NPC statement said. “The size and scope of those tariffs on U.S. goods will bring the potential impact into focus.”
