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ASA Urges Administration to Quickly Negotiate with Countries Facing Higher Tariffs |
While it was not unexpected, the resulting cloud of concern following the administration’s tariff announcement is not without fallout—in the form of continued market uncertainty, the threat of lost business to existing soy markets due to potential tariff retaliation, price increases on inputs and more. The announcement of 10% baseline tariffs on all countries and additional, individualized tariff rates on approximately 60 countries impacts all of U.S. soy’s Top 10 export markets. This includes #1 export market China. The new duties on China will stack atop the 20% tariffs already imposed, bringing the tariff rate on Chinese goods entering the U.S. to 54%.
Despite the gloom of increasing tariffs across the globe and what that may mean for their businesses, soybean farmers are hopeful the administration has a plan to quickly negotiate with impacted countries.
ASA President Caleb Ragland, who farms soy and other crops in Kentucky, said “We are hoping that from obstacles can come opportunity and that the administration will swiftly work with the affected countries to create new market access opportunities for U.S. soy and other U.S. products in these markets so these higher tariffs can be removed. That includes pursuing a Phase 2 Trade Agreement with China.”
There is a sense of urgency for trade negotiations, as concerns about retaliatory action from key export markets are top of mind for U.S. soybean farmers. Farmers reliant on export markets have several asks of the administration.
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