News & Publications
April 11, 2025 |
Will hot tariff talk put exports on ice?
Ag Marketing IQ: 2018 tariffs led to significant price drops in soybean futures and pummeled grain and fuel exports to China, Mexico and Canada. Here are three ways farmers can market their 2025 crop through a trade war.
The marketing landscape changed quickly last week. Just as farmers are about to turn the corner toward planting, President Trump’s “Liberation Day” action put many in agriculture on edge.
While his tariff decision was discussed for months, I think we were all hopeful something would get settled ahead of time. Since that didn’t happen, it leaves us wondering what the long-term effects might be.
The three main trading partners with the United States – Mexico, Canada, and China – account for about 40% of the total value of all goods the U.S. imports and exports. Mexico is the largest buyer of U.S. corn, accounting for slightly under 40% of U.S. exports. Canada is the largest buyer of U.S. ethanol, purchasing nearly 37% of those fuel exports. China is the largest buyer of U.S. soybeans, accounting for almost half of this country’s exports. However, after last week, those relationships are challenged.
