US Agricultural Trade Developments - 2019/06/03
US Agricultural Trade with Mexico
President Trump is making a move to impose a 5% tariff on all Mexican goods on June 10th (80% of their exports go to the US) and to increase the tariff by 5% each month to reach 25% by October until Mexico agrees to help the US on the crisis at the border. If Mexico retaliates, the grain and livestock markets will be vulnerable. Mexico is the top export destination for US pork, corn and wheat and the number-three destination for US beef. This uncertainty” is a bearish force for the markets. Both sides have until June 10th to resolve the issue, and it is difficult to determine which way this will go.