Foreign investors in agriculture say U.S. tariffs could wipe them out—and they may test America in global court | Fortune

Foreign Investors Threaten to Sue US Over Tariffs in Global Court Foreign investors in the agriculture sector are considering taking the United States to a global court over tariffs imposed by President Donald Trump, which they claim could wipe them out. The investors argue that the tariffs violate international investment treaties, promising fair treatment. According to experts, foreign investors have been hit hard by the tariffs, which have caused significant losses and forced some businesses to alter their operations, renegotiate contracts with distributors, and even shut down subsidiaries in the US. "The tariffs are effectively destroying some agricultural businesses," said a source familiar with the matter. In 2018, the US imported over $33 billion worth of produce from abroad, making agriculture one of the most affected sectors by the tariffs. The Trump administration has imposed tariffs on various countries, including China, Mexico, and Canada, citing national security concerns and trade imbalances. Foreign investors are now exploring arbitration options under international investment treaties, such as the North American Free Trade Agreement (NAFTA) and the US-Mexico-Canada Agreement (USMCA). These treaties promise foreign investors fair treatment and protection against discriminatory practices by host countries. While no claims have succeeded against the US in the past, experts say that the situation is different this time. "The tariffs are not just a trade issue; they're also an investment issue," said a trade expert who wished to remain anonymous. "Investors are looking for ways to protect their interests and recover losses." Foreign investors with significant stakes in the agriculture sector include companies from countries such as Canada, Mexico, and China. These businesses have invested heavily in distribution networks, subsidiaries, and other assets in the US. The potential lawsuit could have far-reaching implications for international trade and investment. If successful, it would set a precedent for foreign investors to challenge tariffs imposed by host countries under international law. As the situation unfolds, experts predict that the case will be closely watched by governments and businesses around the world. "This is not just about US-China relations; it's about the global trading system," said a trade analyst at the Peterson Institute for International Economics. The outcome of this potential lawsuit remains uncertain, but one thing is clear: foreign investors are determined to protect their interests in the face of rising protectionism and tariffs imposed by the Trump administration. *Reporting by Fortune.*