US farmers have expressed concern over President Donald Trump's new tariffs on imports from Canada, Mexico and China. They warn that they could have serious consequences for their markets, increase the cost of resources, including fertilizers, and deal a significant blow to the US agricultural sector. Farmers are calling for a quick resolution to the trade dispute, as the consequences could be catastrophic for their businesses.
Problems with agricultural exports
The main concerns of farmers are that the introduction of counter-tariffs will limit the ability to export important US agricultural products such as corn, soybeans, beef and pork. This could affect their income, as key markets, including China and Mexico, are already looking for alternatives to supply these products. US farmers are calling on President Trump to resolve the problem as soon as possible.
Consequences of the trade war with China
Farmers worry that the new tariffs could lead to losses similar to those they suffered during the trade war with China in 2018. Then the US agriculture lost $ 27 billion, although the country's government compensated for part of the losses, allocating $ 23 billion. However, farmers note that even state aid could not fully compensate for the losses and negative consequences for the industry.
Changes in China's import preferences
China has long been trying to reduce its dependence on American agricultural goods, particularly soybeans. According to analysts, the latest trade measures will only strengthen this trend. Arlan Suderman, chief economist at brokerage StoneX, notes that China has recently begun to prefer importing soybeans from countries with weaker currencies, such as Brazil, which allows it to obtain more favorable terms compared to the United States.
Competition in the pork market
American livestock producers, who export about 10% of their pork production to Mexico, are also concerned about the consequences of the new tariffs. They are already losing out to their competitors in Brazil, Chile and Argentina. Joe Shule, vice president of the US Meat Export Federation, notes that even the most loyal customers may start looking for alternatives due to higher prices and supply difficulties.
Impact on the US domestic market
Losing market share in Mexico could also make it more difficult to produce some types of meat, such as bacon and ribs, for domestic consumption. US farmers rely heavily on Mexican meat processors to purchase less popular cuts of pork. This will lead to higher prices for consumers in the US, which in turn will increase the overall cost of agricultural products in the country.
Call for Trade Policy Review
In light of these concerns, US farmers are calling on the government to review its tariff policy and find more effective solutions to support the agricultural sector. They emphasize that agriculture needs stability and support to remain competitive in the global market.