China
Kevin Duling, KD Investors, says grains are shaking off the news of an escalation of the trade war with China as they announced overnight they would be placing an additional 50% retaliatory tariff on U.S. goods, including ag.
After China retaliated with its own tariffs, the U.S. said on Tuesday that 104% duties on imports from China would take effect shortly after midnight, even as the Trump administration moved to quickly start talks with other trading partners targeted by Trump’s sweeping tariff plan.
Mike Minor, Professional Ag Marketing, says while the tariff news was a bit more subdued Tuesday the markets are still watching tariff headlines and that is impacting money flow in and out of the financial sector as well as the commodities.
The senior senator from Iowa is renewing a long-standing legislative effort to wrestle back authority on trade deals and tariffs from the executive branch.
Garrett Toay, AgTraderTalk, says soybeans, livestock and outside markets all had a negative response to China imposing retaliatory tariffs on U.S. imports of an additional 34%. But why was corn up for the week?
The 34% reciprocal tariff announced by China on Friday is in addition to the original 20% retaliatory tariff China issued in March, which targeted 15 products including beef, cotton, grain sorghum, pork, corn, dairy and fresh fruit.
Scott Varilek, Kooima Kooima Varilek, says the panic selling continues as China has hit back with a 34% retaliatory tariff on all U.S. goods and other trading partners are looking at counter measures. “This feels a lot like the COVID market response.”
The parent company of Case IH, New Holland, Steyr and other machinery brands says there will be no impacts to production and parts shipments will continue as planned.
The majority of respondents in the March Ag Economists’ Monthly Monitor agree the U.S. is currently in a trade war, but who wins? Ag economists say it’s not the U.S., Canada or Mexico but rather Brazil that could come out on top.
Dan Basse, Ag Resource Company, says the February highs may be the highs for the year in corn and soybeans with the headwinds he sees ahead.