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U.S. tariffs bad for all farmers

U.S. tariffs bad for all farmers

Equipment manufacturers may have to raise prices to offset increase costs

By Diego Flammini
Staff Writer
Farms.com

Farmers once again find themselves the casualties of a trade war between the U.S. and some of its largest trading partners.

The U.S. announced that, as of midnight yesterday, Mexico, Canada and the European Union would be subject to 25 per cent and 10 per cent tariffs on steel and aluminum exports, respectively.

As a result, Mexico and the EU outlined intentions to place tariffs on American farm products, including pork legs and corn.

Canada revealed its own retaliatory measures yesterday, adding import duties to some U.S. ag products. The Canadian tariffs total about CAD$16.6 billion worth of imports.

Beginning July 1, Canada will add a 10 per cent tariff to such items as American yogurt, coffee, beef products, cucumbers and orange juice. Some U.S. steel and aluminum products will face a 25 per cent import duty.

Grower groups say these tariffs create unnecessary challenges for producers.

“Farmers are busy with planting season but are moving forward without knowing who will buy their crop when it’s harvested later this year,” Kevin Skunes, president of the National Corn Growers Association, said in a statement yesterday. “NCGA urges policymakers to strengthen cooperation with our trading partners and stay at the negotiating table.”

Overall, yesterday was a bad day for farmers and ag equipment manufacturers, said Leah Olson, president of Agricultural Manufacturers of Canada.

“With the Canadian government putting on counter tariffs, yesterday was a very troubling day,” she told Farms.com today. “For farmers, these tariffs are not good news at all. These tariffs will impact our industry – there’s no doubt.”

gguy44/iStock/Getty Images Plus photo


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The weather risk premium in the Ag complex is sending corn, wheat and soybean futures lower on month-end selling ahead of the market moving USDA quarterly grain stocks and acreage reports on June 30th.

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The Stats Canada seeded acreage update was bullish canola and wheat.