Chicago Agriculture Commodities Finished Mixed +Special Report
$SOY, $WEAT, $CORN
Chicago Board of Trade (CBOT) agriculture commodities traded mixed.
California agriculture industry worries about retaliation from trading partners against US tariffs
The agriculture industry in the State of California worried that it will suffer a lot as the United States’ steel and aluminum tariffs on the European Union (EU), Canada and Mexico may cause a strong backlash.
The US federal policy manager for the California Farm Bureau Federation, was quoted by the news outlet Ag Alert as saying Tuesday that four of the Top 5 exporting destinations for Californian agriculture are at immediate risk, and that the disputes between the United States and these economies are worrisome.
The weekly online magazine listed the retaliatory tariffs on US imports that the three economies had announced, as well as China’s latest warning that it would reinstate import duties on US goods if the Trump administration pushes forward potential tariffs on Chinese goo
The EU told the World Trade Organization (WTO) last month it planned to enact tariffs on more than $3-B worth of U.S. goods, including agricultural products such as rice, corn, dry kidney beans, cranberries, tobacco and orange juice.
Canada’s retaliation list included food products such as ketchup and other tomato sauces, yogurt, strawberry jam, nut purees and pastes, berry and other fruit purees, orange juice, pickles, maple syrup, and prepared bovine meat and meal.
All of those items would be hit with a 10% duty.
Mexico released an official list Tuesday, which included agricultural items such as cheeses, apples, potatoes, cranberries, and a number of ham, pork and sausage products.
“The impact to California agriculture is not fully known,” the report said. It cited the 2016 data showing dairy products exported to Mexico, rice sold to the EU, as well as processed-tomato exported to Canada from California amounted to $421-M, $35-M and $295.6-Mrespectively.
Brian Kuehl, executive director for Farmers for Free Trade, said that the new tariffs from the EU, Canada and Mexico could “take many American farm operations to the breaking point.”
“Already, farmers are grappling with the impact of previous tariffs, which have caused falling commodity futures, higher equipment prices, and the markets they’ve fought to get into for decades to vanish overnight,” he said.
“The addition of new retaliatory tariffs on everything from bourbon, to rice, to orange juice and cranberries will only widen the pain to additional farmers across the country,” Mr. Kuehl said.
The US Secretary of Commerce, Wilbur Ross, and his trade representatives do not believe that any of the above mentioned retaliatory actions will have any measurable effect on the US economy or the nation’s consumers.