President Trump’s tariff trade policy moved markets during his first 50 days in office.
We met up with Arlan Suderman of StoneX to get his insight on last week’s events. He told us while Mexico and Canada are part of the equation, China is the main target.
“And I think it’s a strategy by President Trump to contain China. I think that’s what the Mexico and Canada tariffs are to try to get them to come in line with policies that are supportive of containing China, because China has been working through Canada and Mexico to get products into the United States.”
Suderman says while there is still belief our trade relationship with China can be prepared, he is not convinced President Trump has pushed more domestic sales for farmers recently, a message Suderman says leaves the door wide open for biofuels.
“And when he posted on social media here in recent days that the American farmer, and stated in his address to Congress, the American farmer needs to be prepared to sell a lot more domestically, the only thing I can think of that would really help fill that would be the biofuel program. So hopefully we’ll get some commitment on that in the days ahead, to really put his support behind the biofuel program.”
Retaliatory tariffs are another part of the equation. Mexico has not announced any of its own yet, but Suderman says pork producers are likely marked safe, because Mexico does not have any options aside from more expensive sellers.
“That’s food inflation, and I don’t think they can afford the food inflation risks that would cause for their government. And so that’s why I don’t expect pork to be on retaliation. I do expect something new to be worked, and same thing with the other food grains as well.”
