Since the early days of President Donald Trump’s campaign, the prospect of tariffs has been a central and contentious issue. From campaign speeches to his post-election promises, Trump has repeatedly threatened to impose tariffs on goods from key trading partners, including Canada, Mexico, and China. The US relies on imports for key feed additives such as vitamins. While the initial tariff announcements stirred concerns about supply chain disruptions and price volatility, the rapidly changing policy environment adds layers of complexity, leaving industry stakeholders scrambling for clarity on the ultimate impact. Expana is closely monitoring the situation and its effect on feed ingredients; check below for related coverage and a rolling factsheet on the latest developments.
Tariff Specifics
China
On March 3, 2025, the White House amended the previous Executive Order (EO) on China increasing the additional tariff from 10% to 20%. Goods that loaded on a vessel or in transit on the final mode of transport prior to February 1 and until March 7, 2025, can claim an exemption under HTSUS 9903.01.23. The tariffs add to any existing duties or fees on imports. The latest China tariff brings the levies on China-origin methionine to 45%, lysine HCl to 23.7%, lysine sulfate to 49%, threonine to 27%, tryptophan to 26%, and valine to 45%.
Canada and Mexico
On March 11, Trump announced that he will increase tariffs on steel and aluminum imports from Canada by 25%, raising the total duty on these goods to 50%. This move comes in response to Ontario imposing a 25% tariff on electricity exported to the US. On March 6, 2025, the White House issued two EO delaying the 25% tariff on some products of Canada and Mexico effective March 7, 2025, at 12:01 a.m. Eastern Time. The EO do not specify an ending date to this action. While speaking to reporters from the Oval Office, Trump said the pause in tariffs on Mexico and Canada will expire April 2. He added that he still plans to impose “reciprocal” tariffs on April 2.
Who Pays the Tariffs?
When the US imposes tariffs on imported goods, the importer—usually a US business—pays the tax to the US government at the point of entry. While foreign sellers do not directly pay tariffs, they may lower prices to stay competitive, absorbing some of the cost. Importers can also pass the expense onto consumers through higher prices. In most cases, at least part of the tariff burden ultimately falls on American businesses and their customers. Tariffs are collected by US Customs and Border Protection and go to the US Treasury.
Feed Ingredient Trade
The US imports all vitamins, with China dominating global production. The US is the largest net importer of vitamin E globally. Although sufficient lysine and threonine capacity exists in the US, operating rates, plant shutdowns and market exits by Ajinomoto and ADM have led to price volatility and further reliance on imports. Although China does export tryptophan to the US, imports are minimal from China at this time. CJ brings tryptophan from Brazil or Indonesia to the US. Ajinomoto is the sole domestic producer in the US. Valine is imported into the US from China primarily, but also Malaysia. The US imports mineral feed ingredients from China, Canada and Mexico. Soybeans, the top US farm export by value, as well as corn, wheat and meat exports are vulnerable to retaliatory tariffs.
Reason for the Tariffs
The US government is targeting new tariffs on Canadian, Mexican, and Chinese goods due to concerns about illegal drug trafficking, particularly fentanyl, and illegal migration. These actions are framed as a response to a national emergency, citing the devastating public health impact of fentanyl and the strain that illegal immigration places on American resources, according to the White House.
