Grain markets faced renewed selling pressure as the EU announced retaliatory tariffs targeting US agricultural imports, escalating tensions in the latest trade dispute between the two economic powers.
Chicago soybean futures for May 2025 declined by 1.0% in midday trading, while corn - of which the EU is a significant buyer - dropped 2.1%. Wheat, which has a smaller export flow from the US to the EU, eased 0.4%, reported CRM Agri.
The EU Commission has unveiled tariffs on up to US$28bn worth of US imports, a response to US duties on aluminium and steel products. Among the affected goods are key agricultural commodities, including durum wheat, beef, poultry, and soybeans - an essential feed component for EU livestock production.
Feed industry at risk
The EU livestock sector could face supply disruptions and increased feed costs, warned FEFAC, the European trade body for compound feed and premix manufacturers.
Pedro Cordero, FEFAC President, stressed the importance of long-term US-EU feed trade relations, highlighting the risks posed by these new tariffs.
The proposed measures could disrupt essential feed supply chains, particularly for protein-rich products like soybeans, maize, and key feed additives, where the EU has a structural deficit, he noted.
Call for diplomatic resolution
He urged both sides to engage in direct negotiations to remove the tariffs and seek alternative trade agreements.
Cordero also referenced the 2018 ‘Trump-Juncker’ agreement on soy products, which led to a significant boost in US soy exports to the EU, suggesting similar diplomatic efforts could help prevent further market instability.