Uncertainty from trade tariffs continues to weigh on U.S. grain prices, hitting soybean prices the hardest, followed by wheat and corn. It’s causing a lot of countries to take a step back and re-evaluate. Either to look at getting more negotiations done on trade deals or look at other routes to meet their needs.
President Donald Trump recently signed an executive order that updated reciprocal tariffs for some countries that go into effect August 7 and increased tariffs immediately for countries like Canada. Canada has a new tariff rate of 35 percent. Products included in the U.S.-Mexico-Canada Agreement are exempt from tariffs. Don Roose with U.S. Commodities says other big trading partners for U.S. agriculture, like Mexico, have a deadline extension of 90 days before tariffs go into effect. Roose says if trade discussions between the U.S. and China continue to drag out, it would be negative for the U.S. farmer, because of the potential lost demand from China.
Hear Don Roose on last Tuesday’s episode of Agriculture of America (AOA) below:
And you can always get the latest market analysis on the Market Talk YouTube Channel including last Friday’s episode of the show with analysis from Naomi Blohm with Total Farm Marketing.
