President Trump made a major announcement late yesterday on trade with Brazil. He is threatening 50 percent tariffs on all imports. While his message was largely around political events there, he warned that the trade imbalance has gone on long enough.
President Trump told Brazil’s president that new tariffs rates will begin August 1st. He is also calling on U.S. Trade Representative Jamieson Greer to open an investigation into unfair trade practices.
Brazil is a major trading partner, and some worry that the President’s trade policy might cause retaliation. However, Greer argues that tariffs give the U.S. the upper hand.
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U.S. soybean farmers are growing increasingly frustrated by Argentina’s gains in Chinese grain contracts and Trump’s pledge of economic support for the South American ally.
The USDA is moving to close the farm trade gap through promotion, missions, and stronger export financing.
Argentina hopes to boost demand, but critics see the move as a blow to American farmers.
China is making strategic moves by purchasing more soybeans from Argentina and may soon follow the EU and reopen its market to Brazilian chicken exports.
The three-point plan was announced during remarks at the annual meeting of the National Association of State Departments of Agriculture.
Higher tariffs may shield some U.S. crops but risk retaliation, lost markets, and higher costs for growers. The WTO disputes highlight the fragile balance between trade policy, farm exports, and input supply chains.
