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.
China’s pledge to buy 12 MMT of U.S. soybeans is facing questions over timing, storage capacity and price competitiveness, leaving markets uncertain whether the full promise can be met before year-end.
The government should get out of American farmers’ way and allow market forces to work. Don’t give us handouts. Let us sell what we grow to the people who want to buy it, at home and abroad.
Because of this administration’s trade war, however, our traditional customers are now turning to growers in countries that have chosen to engage in economics rather than to play politics. They are starting to give their business to Australia, Spain, and elsewhere.
The change reverses part of a July trade action that had imposed elevated import duties on multiple categories of Brazilian goods and is the latest effort by the Trump administration to bring grocery prices down.
Ag products not grown or produced enough in the U.S.—including coffee, fruit and some fertilizers—are being removed from Trump’s reciprocal tariff list. The move also lifts tariffs on one major ag import: beef.
Scott Varilek of Kooima Kooima Varilek says the cattle market is seeing a short covering or technical bounce after an ugly down week. So is the fund liquidation done yet or is this a dead cat bounce?
Ted Seifried says the ag markets saw risk off selling across the commodity board and profit taking in the grains after the recent rally. But with the volatility in the soybean market is this topping action?
As fertilizer prices and demand hold firm this fall, Josh Linville with Stone X Group warns prices could climb higher if reported government aid payments arrive this year.
Darin Newsom, senior market analyst with Barchart, Inc., says commodity wide selling is hitting the grain and livestock futures early Thursday and some of it is tied to uncertainty regarding the future of tariffs.
Mark Knight, Farmer’s Keeper Financial says,"China did keep 10% tariffs in place. So,it’s really a 13% total tariff for incoming soybeans. Argentina and Brazil get charged 3%. And so we’re still 10% higher than that.”