Latest news with #NorthAmericanFreeTradeAgreement
UPI
2 days ago
- Business
- UPI
Tariffs, uncertainty 'paralyzing' for farmers
July 22 (UPI) -- President Donald Trump's tariff negotiations have the agriculture industry facing uncertainty and soybean farmers are among those most affected. The price of soybeans continues to decline while the cost of growing rises. The United States has lost its footing in the global soybean market, due in part to Trump's tariff policies during his first term. Current trade negotiations have some in the industry asking for assurances. "When there's uncertainty in the market it's paralyzing," Caleb Ragland, president of the American Soybean Association and ninth-generation farmer, told UPI. "It tends to make people, when in doubt, do nothing. Don't buy, don't invest." Soybeans are the largest single agriculture commodity exported by the United States. China is the biggest buyer of U.S. soybeans but the share of the crop it purchases has declined significantly since Trump placed tariffs on the country in 2018, according to the University of Illinois' Department of Agricultural and Consumer Economics. Prior to that, about a third of its soybeans were imported from the United States. Tariffs caused China to look elsewhere for soybean imports, dragging down the price of U.S. soybeans. Brazil has been the beneficiary of this change, upping its share of the Chinese soybean market from about 45% to about 70% and raising its prices. The United States accounts for about a 20%-25% share of Chinese soybean imports. One reason that China is crucial to the soybean market is that it raises more pigs than any other country. The soybean is a key source of protein in livestock feed. The largest soybean producing states are Iowa, Illinois, Indiana and Minnesota, according to the United States Department of Agriculture. China has routinely had about a 3% tariff on U.S. soybean imports. The effective tariff is now 23% in response to tariffs imposed by Trump earlier this year. "We lost our number one market for ag exports overnight," Joseph Glauber, senior research fellow at the International Food Policy Research Institute, told UPI. Glauber is the former chief economist for the USDA. He served in the role for 22 of his 30 years with the USDA. Among his responsibilities was operating as the chief ag negotiator. "When I was the chief negotiator, that was in the context of WTO negotiations, which are really textual -- arguing over wording in documents," Glauber said. "What the Trump administration has been talking about are these framework documents with no details. It's a very different thing to think about. These things aren't very longterm, unlike the [North American Free Trade Agreement]. Those are long-running agreements." Tariffs have always been a negotiating tool, Glauber said, but for decades the United States has worked to reduce tariffs. Multilateral and bilateral trade agreements, such as the General Agreement on Tariffs and Trade and the World Trade Organization, created mechanisms for trade partners to resolve disputes and maintain relationships. At times, tariffs would be increased, but within the guardrails of long-standing and long-term agreements. "The Trump administration destroyed that," Glauber said of the World Trade Organization. In 2019, Trump blocked the appointment of members to the World Trade Organization's appellate body, rendering it unable to settle trade disputes. The United States' proactive approach to fostering trade has largely hit a standstill since Trump first entered office in 2017, Glauber said. Former President Joe Biden did not raise tariffs but he also did not eliminate tariffs on China that were implemented by the Trump administration. As U.S. exports like soybeans lose demand, the prices farmers can sell them for also decreases. Soybeans hit record prices during the former President Barack Obama's second term before hitting a lull throughout Trump's first term. Prices rose again under former President Joe Biden, peaking at $16.88 per bushel in June 2022. The price has steadily declined since, falling to around $10 per bushel in July, down about 40%. The Chicago Board of Trade is a key marker that farmers across the United States monitor to evaluate their risks and offer a benchmark for crop prices. Farmers will measure the prices offered above or below those futures prices reported by the Chicago Board of Trade at their local elevators to determine when to sell. If a crop is sold to a grain elevator at a certain price, the seller locks that price in. For example, if a crop is sold in July at the October future price, they will receive that price in October. If prices are higher, they will have missed out on potential profit. If it is lower, they will be protected from that lower price. Ragland farms soybeans, corn and wheat on his family farm in Magnolia, Ky. Farming is the sole source of income for him, his wife Leanne and their three sons. This year's crop marks his 21st grown on his own farm. Soybeans are planted in the spring and harvested in the fall, beginning in the end of August through September. The next two months will be critical for farmers like Ragland, as there will be more clarity about the true economic impact of Trump's trade policies on the ag industry. "It's been speculation up to this point and anticipation by the market but we have not truly been in the middle of actively sending the lion's share of our crop since all this tariff announcement has been made and all the back and forth that has happened with it," Ragland said. "If we don't have some surety in our markets here in the next 30, 45 days, it is going to lead to more significant price drops, we believe. There is very, very weak demand right now from what we hear for exports due to all the uncertainty in the market." The agriculture community is experiencing economic hardships across the board and tariffs are a part of that. Chapter 12 bankruptcy filings, used to reorganize a farm operation in order to repay debts, were up sharply in the first quarter of 2025. In the first quarter of the year there were nearly twice as many Chapter 12 bankruptcy filings than in the first quarter of 2024, the University of Arkansas Division of Agriculture reported last week. Farmers may be the first to feel the sting of a downturn in grain prices but they are not alone. Implement dealers, equipment manufacturers and businesses in rural communities are also affected. "They say $1 made in agriculture usually floats around six to eight times in the local community," Ragland said. "That means small businesses and stores and everything else in rural communities are hurting as well. All of this has a very detrimental effect on rural America." "I would also note a lot of these areas we're talking about are the ones that were very large supporters of President Trump," Ragland continued. "We want to respectfully appeal to the administration that we need surety, we need certainty, we need trade deals to be made now and not potentially in the future because the farm economy is in a very difficult spot." According to Ragland, commodity prices are not meeting the cost of production as they are currently. Inflation has aggravated the financial position of farmers like him as fertilizer prices, insurance premiums and equipment costs have risen. The effects Ragland and other producers are dealing with not only disrupt their current crop. It also makes planning for the future more difficult. "The plans I have for this crop here in 2025, a lot of those plans started taking place a year or two ago," Ragland said. "We rotate crops. Sometimes there's fertilizer applied that would be utilized a year or two in the future by the crops. The wheat that we just harvested in June was planted in October of 2024. The seed I planted to grow that crop had to be planned ahead for in the fall of 2023. It's a long-term process, the decisions we have to make."
Yahoo
12-07-2025
- Business
- Yahoo
Trump threatens 30 percent tariffs on the EU, Mexico
President Donald Trump on Saturday threatened 30 percent tariffs on two major U.S. trading partners — the European Union and Mexico. In letters posted to Truth Social, the president said each country would face the new tariffs starting Aug. 1, though he left the door open to further talks to bring down that rate, as he did in missives to other foreign leaders this week. The new levies represent a 10 percentage point increase for the European Union from the 'Liberation Day' tariff rates Trump announced in April, and a 5 percentage point boost from the 25 percent rate Mexico was slapped with in March related to the fentanyl crisis. Together, the two trading partners account for about one-third of U.S. imports. The United States imported $605 billion worth of goods last year from the 27 nations of the EU, whose major members include France, Germany, Spain and Italy. It imported $505 billion from Mexico, a member of the U.S.-Mexico-Canada Agreement that Trump negotiated during his first term to replace the 1990s-era North American Free Trade Agreement. The U.S. trade deficit with the EU was the second highest of any trading partner in 2024, coming below China, while the deficit with Mexico was the third highest. The messages to Mexico and the EU follow a week of similar letters sent to U.S. trading partners, which began with South Korea and Japan. Trump sent letters to more than two dozen countries, many of them emerging economies that have not had the kind of robust trade talks with the U.S. that major trading partners have had. The fact that the letters to the EU and Mexico came so late in the week appear to signal that they remain in better standing with Trump than those that received earlier letters. The decision to send letters first to South Korea and Japan was widely seen as an effort to single out those two countries amid stalled negotiations. Negotiations with both trading partners targeted Saturday are ongoing and, in the case of the EU, appear to be closing in on some sort of framework for a trade deal. Earlier this week, Commerce Secretary Howard Lutnick said a deal with the EU was on Trump's desk for a final decision. In the letter, Trump asserts the EU 'will allow complete, open Market Access to the United States, with no tariffs being charged to us, in an attempt to reduce the large Trade Deficit.' It's not clear if the EU has agreed to such a term or if Trump is merely trying to impose that outcome. European leaders on Saturday responded by saying they were still interested in negotiations — but pointedly did not rule out retaliation if it became necessary. European Commission President Ursula von der Leyen posted on X that while Europe would continue working toward an agreement with the U.S. before the Aug. 1 deadline, they would also continue to "safeguard EU interests on the basis of proportionate countermeasures." 'A 30% tariff on EU exports would hurt businesses, consumers and patients on both sides of the Atlantic,' she wrote in the post. Trump had also warned in his letters both the EU and Mexico he will match any attempt to retaliate against U.S. exports. The EU is dropping its plans to levy a tax on digital companies, an important concession to the U.S. that could set the stage for a deal in the coming weeks. And the bloc has telegraphed confidence that it will reach an agreement ahead of the Aug. 1 deadline. In response to Trump's tariff threats, Irish Prime Minister Micheál Martin said he supported von der Leyen and her chief trade negotiator, Maroš Šefčovič, saying he preferred "a negotiated solution." Ireland, Europe's leading pharmaceuticals exporter to the U.S., is particularly vulnerable to tariffs. Trump has threatened to implement a 200 percent tariff on pharmaceuticals. In a statement, the office of Italian Prime Minister Giorgia Meloni said the hope is to avert U.S. tariffs. 'It is now essential to remain focused on the negotiations, avoiding polarization that would make reaching an agreement more difficult,' the Palazzo Chigi said. The letter to Mexico accused the country of failing to curb fentanyl smuggling, saying the cartels are trying to turn the U.S. into a 'Narco-Trafficking Playground.' Mexican President Claudia Sheinbaum recently pushed back on accusations from the Treasury Department that Mexican financial firms had laundered millions of dollars related to fentanyl trafficking. The Mexican government also put out a statement Saturday indicating that a delegation met with U.S. officials on Friday to establish a working group to address 'the main issues in the relationship.' The statement said Mexican negotiators were aware a letter would be coming and that while they believed it was "unfair treatment and that we disagreed" with the strategy, "Mexico has begun negotiations." Trump's proposed tariff rate on Mexico is 5 percentage points lower than what he imposed on the U.S.'s other major North America trading partner: Canada. The Thursday letter said Canada would have a 35 percent tariff, also citing what the president called an inadequate push from Canadian officials to address fentanyl. The tariffs on both Canada and Mexico will only be imposed on goods that do not comply with the 2020 USMCA, though the final decision will be up to Trump, according to White House official, granted anonymity to discuss the negotiations. India is the last of the major U.S. trading partners that has yet to receive a letter, with the two countries said to be closing in on a deal. Trump recently told NBC News that many other trading partners will receive a final tariff rate of 15 to 20 percent.
Politico
12-07-2025
- Business
- Politico
Trump threatens 30 percent tariffs on the EU, Mexico
Together, the two trading partners account for about one-third of total U.S. goods imports. President Donald Trump on Saturday threatened 30 percent tariffs on two major U.S. trading partners — the European Union and Mexico. In letters posted to Truth Social, the president said each country would face the new tariffs starting Aug. 1, though he left the door open to further talks to bring down that rate, as he did in missives to other foreign leaders this week. The new levies represent a 10 percentage point increase for the European Union from the 'Liberation Day' tariff rates Trump announced in April, and a 5 percentage point boost from the 25 percent rate Mexico was slapped with in March related to the fentanyl crisis. Together, the two trading partners account for about one-third U.S. imports. The United States imported $605 billion worth of goods last year from the 27 nations of the EU, whose major members include France, Germany, Spain and Italy. It imported $505 billion from Mexico, a member of the U.S.-Mexico-Canada Agreement that Trump negotiated during his first term to replace the 1990s-era North American Free Trade Agreement.
Scroll.in
11-07-2025
- Business
- Scroll.in
Donald Trump announces 35% tariff on Canada, plans 15%-20% levies on others
A 35% tariff will be imposed on Canadian exports to the United States starting August 1, President Donald Trump said in a letter to Canadian Prime Minister Mark Carney on Thursday. The US president has sent more than 20 such letters to several countries since Monday amid his trade war. Trump's letter to Carney came even as Canada and the US were negotiating a trade deal. Canada and the United States' southern neighbour Mexico are attempting to put their trilateral trade deal back on track. The United States-Mexico-Canada Agreement had replaced the North American Free Trade Agreement in 2020 after Trump forced a renegotiation during his first term in office. The USMCA was to be reviewed by July 2026. However, Trump has targeted Canada and Mexico, claiming that they had not done enough to stop undocumented migrants and drugs from entering the US. Reacting to Trump's announcement on Thursday, Carney said that Ottawa will continue to defend its businesses. 'Throughout the current trade negotiations with the United States, the Canadian government has steadfastly defended our workers and businesses,' Carney said on social media. 'We will continue to do so as we work towards the revised deadline of August 1.' Trump's so-called reciprocal tariffs had taken effect on April 9. Hours later, however, he had reduced the rates on imports from most countries to 10% for 90 days to provide time for trade negotiations. Before this, Washington had already imposed a 25% tariff on a range of products from Canada, Mexico and China in February. The US president had repeatedly said he intended to impose a reciprocal tax on several nations citing high tariffs the countries impose on foreign goods. The tariff plans led to concerns of a broader trade war that could disrupt the global economy and trigger a recession. Washington has set August 1 as the deadline to conclude trade talks. However, Trump told NBC News on Thursday that he was planning to impose a blanket tariff of 15% or 20% on most trade partners. The blanket tariff rate is currently 10%. 'Not everybody has to get a letter,' Trump said. 'You know that. We're just setting our tariffs. We're just going to say all of the remaining countries are going to pay, whether it's 20% or 15%. We'll work that out now.' On Sunday, Trump said that Washington will impose additional 10% tariffs on countries aligning with the 'anti-American policies' of the BRICS grouping. The BRICS comprises India, Brazil, Russia, China, Saudi Arabia, South Africa, Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates. Washington views the group as attempting to become an economic counterweight to the US.
Hans India
03-07-2025
- Business
- Hans India
Indian pharma exports firm at $4.9 billion
Pharmaceutical exports in India stood strong at $4.9 billion in April-May FY26, according to the latest update by the Pharmaceuticals Export Promotion Council of India (Pharmexcil). Pharmexcil is an authorised export promotion agency under the Commerce and Industry Ministry. The data showed that the sector has made a 7.38 per cent expansion compared with the same period last year. This indicates that the industry is continuing with its upward trajectory and marking a significant presence globally. This growth is due to 'strategic initiatives focused on sustainable manufacturing, expanded global market presence, and digital innovation,' Pharmexcil said, adding that the efforts may bolster India's ambitious goal of achieving a trillion-dollar trade target for its pharma industry. 'India's pharmaceutical exports continue to demonstrate a steady year-over-year growth, with drug formulations and biologicals continuing to dominate the export category,' Namit Joshi, chairman of Pharmexcil, was quoted as saying in a media report. 'We attribute this growth to rising global demand, streamlined regulatory approvals, technological innovations, strategic partnerships, and economic stability,' Joshi added. Notably, formulations and biologicals accounted for 75.74 per cent of the total of the pharma exports. Bulk drugs and drug intermediates also expanded by 4.40 per cent in May. Vaccine exports saw a 13.64 per cent increase and reached $190.13 million, while surgical items (up 8.58 per cent) and Ayush and herbal products (up 7.36 per cent) also saw healthy growth. According to Pharmexcil, about 76 per cent of India's pharmaceutical export destinations include the North American Free Trade Agreement (NAFTA) region, as well as Europe, Africa, and Latin America. However, the US remains the top destination. In May, exports to the country were valued at $1.7 billion in May -- representing 34.5 per cent of total pharma exports and a 1.5 per cent expansion. While Europe and Africa saw moderate growth, the ASEAN region emerged as a newly contracted area. According to Joshi, the India-UK Free Trade Agreement (FTA) discussions showed it will significantly enhance supply chains and improve access to affordable medicines. It will also attract foreign direct investment, particularly in contract development and manufacturing (CDMO) and joint research.
