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How US tariffs are reshaping American agriculture trade

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  How US tariffs are reshaping American agriculture trade In recent weeks, tensions around US tariffs have begun to affect the global agricultural markets, and American farmers are also being affected. A recent article from AGCanada illustrates how the exports of agricultural grain are being affected, especially corn. As a result of the geopolitical tension, Asian buyers such as China, Japan, South Korea and Thailand are starting to turn away from American products and seek alternative suppliers in South America and Eastern Europe. Additionally, some of these countries are introducing or increasing retaliatory tariffs on US farm products. Given that the U.S. is one of the world´s leading corn-exporting countries, losing market share could have a significant effect on prices, and potentially their planting decisions. With competition heating up from Brazil and Argentina, who offer competitively priced corn without political tension, US exporters can face a growing pressure. Furtherm...
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   Black Sea deal and weather forecast pulls wheat prices down The United States has announced a  Russia-Ukraine Black Sea maritime security deal after talks in Riyadh.  The aim of the deal is to ensure safe exports of agricultural products through black Sea, and the U.S. has agreed to help Russia restore its access to the international market for agricultural and fertilizer exports.  Retrieved from: https://www.reuters.com/world/europe/russia-says-proposed-black-sea-initiative-is-new-deal-2025-03-27/ News of the agreement has  led to a drop in the Chicago wheat futures, and the most traded wheat contract hit its lowest point since 5th of march.  According to bairdmaritime.com, the news is seen as bearish, as it opens doors to safer shipping from the two countries, which as a result will lead to increased exports and supply of the commodities.  The site also mentions that prices of the wheat futures are affected by improved weather forecasts, in r...
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China announces increased tariffs on American agricultural products

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  China announces increased tariffs on American agricultural products China has announced countermeasures on Trump's tariffs with 15% extra tariffs on American agricultural products, and essential staple foods such as wheat and corn will be affected.  Retrieved from: U.S. department of agriculture The diagram provided above illustrates the top destinations of The United States agricultural exports.  China is the biggest market of U.S agricultural products, and such trade wars make the american farmers very vulnerable. According to Reuters, these levies announced by China will affect about $21 billion in US exports.  The United States exports of agricultural goods to China in 2022 was worth $42,8 billion, and fell to $29,5 billion in 2024. As a result of this trade war, these numbers were lowered more significantly.  Furthermore, the recent expansion of tariffs by President Trump has also expanded the reach of a trade war to include Canada and Mexico. This ongoi...
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  Shift in corn production strategy American farmers are making a strategic shift towards planting more corn in 2025. This strategy is driven by the recent pressures and growing uncertainties regarding trade policies after President Trump implemented reciprocal tariffs. According to a recent article from Reuters, American farmers are planning on increasing corn production by 4%, and decreasing the soybean production by 3.6%. According to an article from Progressive farmer, USDA forecast that farmers will make a record in corn crop in this year and the upcoming year.  Estimates made by USDA, there will be planted 94 million acres of corn, an increase of 3,4 million acres from last year. The article further states that USDA estimates corn production up 718 million bushels, with a yield estimate of 181 bushels per acre. If these figures hold, both the production and yield would reach all-time highs.  Seth Meyer, the Chief Economist at USDA, stated that the recent bounce in c...
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  Corn and wheat trade vulnerable to Trump's tariffs?   President Trump's arrival at the Oval Office has created large uncertainties regarding world trade because of his policies regarding reciprocal tariffs.  The countries in the diagram below, illustrates 10 countries that stands for approxamtely 60% of exports in the United States.  Retrieved from: https://investigatemidwest.org/2025/02/12/president-trumps-tariffs-bring-return-of-uncertainty-for-americas-farmers/ The United States are Mexico's biggest trade partners.  According to the U.S. The Department of Agriculture, Mexico exports approximately 92% of their goods in this sector to the United states.  If the countries affected by the tariffs decide to “counterattack” by imposing tariffs on american goods, it may be a step towards trade war and large uncertainties in the world of commodities.   The tariffs imposed on Mexican goods can cause difficulties also for American farmers, as they will...
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