The markets are sharply reacting to a looming trade war with China, Mexico, and Canada, as tariffs on our largest ag trade partners will take effect tomorrow.
The White House says tariffs include 10 percent on all imports from China as well as 25 percent on Mexico and Canada. Energy imports from Canada would be taxed at 10 percent. Canada has said it will retaliate with tariffs targeting more than $100 billion in U.S. goods, and Mexico is set to release a list today, which is expected to include agricultural goods.
RFD-TV’s Suzanne Alexander was joined by Tommy Grisafi and Chris Swift to talk about how the markets are reacting so far, how they could react further, and what it could look like for the cattle market.
RealAg Radio’s Shaun Haney also joined us to discuss how Canadian officials are responding, if he thinks the tariffs could be put at bay, and what the tariffs on energy mean for consumers.
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.
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U.S. trade talks with China resume, but meat industry leaders say dealing with shifting demand and market uncertainty is nothing new in this side of the ag sector.
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Tariffs are pushing up input costs, with fertilizer prices rising $100 per ton and machinery costs climbing due to steel and parts duties.
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U.S. producers are holding off on equipment investments amid financial pressure, market uncertainty, a rising demand for diesel, and growing desperation for trade wins.
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