To repeat, how important are U.S. potato exports to the potato industry as well as the general economy?
Fact is, U.S. potato exports are an important economic driver. As a prime example, from July 2022 to June 2023, exports totaled a bit over 3.3 million metric tons with approximately $2 billion in sales and $4.78 billion (direct, indirect and induced) in total economic impact, sustaining around 33,800 jobs. To be a bit more precise, the worth of frozen potato exports is about $1.5 billion, with dehydrated potatoes at $263 million. Add to that fresh potato exports at $328 million while potato chips come in at approximately $225 million.
Taking a bird’s-eye view of the potato industry, U.S.-grown potatoes and potato-related products produce direct economic activity (growing, processing and retail) and support jobs in every area of the country, creating an approximate 714,000 domestic jobs.
At present, 20 percent of all potatoes grown in the U.S. are exported, in either fresh or processed form, fashioning a significant part of the U.S. potato industry. Chief export markets are Canada, and South Korea. Other important export countries are Honduras, Guatemala, the Dominican Republic, Malaysia and the Philippines.
It’s also been stated that modest and attainable expansions in potato trade access to both new and existing trade partners, including Canada, Japan, Mexico, South Korea and other East Asian and Middle Eastern countries, could add $1 billion in sales and create another 5,600 domestic jobs.
According to the National Potato Council, the organization that produced the above report, this expansion signifies a significant boost compared to the current impact of annual potato exports. This is revealed in its latest report on the economic impact of the U.S. potato industry, “The Current and Potential Impact of Expanded Potato Export.”
Although this doesn’t speak directly about the potato industry, it’s important to note that in its most recent report this past March, 35 food and agricultural groups published the 10th annual Feeding the Economy report, a farm-to-fork study of the total agricultural supply chain. This particular report examines the direct and indirect economic impact of the food and agricultural industries to U.S. jobs, wages, economic output and taxes.
One of the highlights of the Feeding the Economy report specified that U.S. food and agricultural exports totaled more than $177.3 billion in 2025, although exports fell by approximately $5.4 billion year-over-year. According to the report, this emphasizes the significance of maintaining robust trade agreements and enlarging market entrée for American producers.
This leads to another important question: Are there any barriers to the continuing growth of the potato export market? Most definitely.
Among the most significant barriers are the following:
- Tariffs and quotas: Many countries enact above average tariffs on U.S. potatoes, making them less competitive.
- Sanitary and phytosanitary measures: Other nations may employ severe, frequently protectionist, health and safety guidelines to prevent imports, particularly for fresh potatoes.
- Market access restrictions: Certain countries, including Japan and Korea,
have historically kept a tight rein on access to U.S. fresh potato exports. - Currency fluctuations: A strong U.S. dollar makes exported potatoes more costly for foreign buyers, cutting into demand.
- Retaliatory measures: U.S. tariffs on other goods can initiate reciprocal actions from trading partners, also impacting the potato industry.
Speaking of retaliatory measures, the current debate over tariffs is putting the U.S. potato industry (among many others) under pressure by increasing input costs (fertilizer/machines) and menacing important export markets.
In addition, retaliatory tariffs from countries such as Canada and Mexico can endanger critical segments of U.S. potato exports, while regional processors face an increase in costs for imported parts.
Chief impacts on the U.S. potato industry:
- A boost in input costs: Growers encounter higher prices for fertilizers and machinery.
- Retaliatory tariffs and export risk: Retaliatory tariffs from major trade partners, especially Canada and Mexico, take aim at U.S. potato exports, with prior trade wars leading to dips in frozen, dehydrated and fresh potato segments.
- Supply chain disruption: Processors are forced to shift inventory between U.S. and Canadian facilities to help mitigate costs, but this interference will lead to indecision, particularly in potato producing states.
- Shrunken profit margins: With constricted cash flows, producers may be forced to cut down on acreage or cut back on important farm maintenance and improvements.
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