Ag trade consultant Sharon Bomer Lauritsen says another trade war has begun.

“Much broader, actually, than what we saw in 2017 or 2018 and it may not stop here.”

On Tuesday, the United States placed 25% tariffs on all Canadian and Mexican imports, as well as an additional 10% tariff on Chinese products, bringing that rate up to 20%. She says China and Canada have responded with retaliation.

“In the case of Canada, the tariffs go into effect today (Tuesday). In the case of China, they’ve qualified their tariffs will not apply for product shipped prior to March 10 and arrives in China before April 10, I believe.”

China announced an additional 10 to 15% tariffs on certain U.S. imports that include soybeans, beef, cotton, sorghum, pork, tree nuts, wheat and corn.

Canada has launched a 25% tariff on U.S. imports, which includes citrus and poultry, and that could include more products if the tariffs are still in effect at the end of the month. Mexico has vowed retaliation and their response is expected on Sunday.

Lauritsen says another trade war has an impact on U.S. farmers.

“I think we need to be watching the prices of our commodities in light of soy, corn, wheat getting cut off or additional tariffs imposed by China. I think we’ll see softening of commodity prices in that area.”

The grain markets softened in response to the tariff news and South American weather.

Source: Brownfield Ag News / Carah Hart