Tariffs
Tariffs, also known as taxes on imported goods, are a tool used by President Donald Trump as part of his overall economic vision. As U.S. agriculture navigates tariffs and their implications on trade, commodity prices, input costs and more, ag economists and farmers remain divided on the effectiveness of tariffs and what the changes mean for the broader economy and livelihoods.
On her list of issues to tackle, says Secretary of Agriculture Brooke Rollins, is deciding if farmers will need another round of assistance payments later this year and if USDA headquarters should be relocated.
The tit-for-tat on tariffs between the U.S. and China continues, with China announcing on Friday a new rate of 125%, which is up from the 84% announced earlier this week. That pushes the tariff on U.S. pork and pork variety meat to 172%. The new soybean tariff is more than 150%.
Mark Schultz, Northstar Commodity, says the ag markets have handled the escalation of the trade war with China remarkably well this week.
Chip Nellinger, Blue Reef Agri-Marketing, says corn and soybeans ended higher with lower ending stocks in the WASDE as corn fell below the 1.5 billion bu. mark.
Rising tariffs between the U.S. and China are putting pressure on key dairy exports like whey and lactose, sparking concern over the potential of lost sales and falling prices.
“The sourcing from international markets has become mandatory. It’s more likely that things will get expensive than change,” says Jim DiLisi of Fanwood Chemical.
Arlan Suderman, StoneX Chief Commodities Economist says the markets reacted positively to the 90-day delay on reciprocal tariffs for countries that reached out to negotiate with the U.S. and did not retaliate.
A global industry with tightly tied supply lines is riding the tariff roller coaster as the world waits to see how President Trump’s tariff strategy will play out.
As the trade war heats up, the reality is China is still the top export destination for U.S. farmers, even if the country isn’t buying as many soybeans as 2018.
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.