A 20 per cent tax on imports would increase food prices in the United States and lower farm prices for corn, soybeans and wheat, according to market analyst Ken Goldman of J.P. Morgan bank.
Countries hit by president-elect Donald Trump’s proposal to impose tariffs of 20 per cent across the board might prompt retaliatory tariffs on U.S. exports of grains and oilseeds, he said.
If that happens, food processors’ costs would decline and that would offset the price increases arising from a Trump tariff, Goldman reasons.
There are reports that Canadian officials are preparing a list of retaliatory tariffs should Trump impose his tariffs.
Mexico’s president Claudia Sheinbaum has said she will stop migrants from moving through Mexico to the United States, prompting a supportive message Trump posted on his news service.
Some of Canada’s premiers are asking Prime Minister Justin Trudeau to step up efforts to stop the illegal movement of drugs and people to the United States as a response to Trump.
Among agriculture sectors that would be hardest hit by Trump tariffs are pork and greenhouse tomatoes and peppers.
