InfoSAWIT, BRUSSELS – The European Commission has announced the implementation of retaliatory tariffs on imports of corn and soybeans from the United States in response to tariffs on steel and aluminum imposed by former US President Donald Trump. This measure will be implemented in two phases, with tariffs starting on April 1 and fully effective by April 13.
European Commission President Ursula von der Leyen explained that the first phase involves reinstating import tariffs that were previously suspended in 2018 and 2020, including a 25% tariff on US corn. The second phase will include additional actions against other US products, including soybeans, with details to be decided after discussions with EU member states.
This move is expected to have a significant impact on US farmers. According to market analysts, the US exports about 3 to 4 million metric tons (mt) of corn to the EU each year, representing about 4% of total US corn exports, which reach 60 million mt per season. Meanwhile, US soybean exports to the EU amount to 5 to 7 million mt annually, accounting for over 10% of total US soybean exports.
Market reactions to the tariffs on US corn have varied, particularly regarding their impact on the EU livestock sector, which heavily relies on US corn for animal feed. A European market analyst stated that these tariffs could increase production costs and reduce the competitiveness of the EU livestock sector.
“Spain, as one of the main importers of US corn, may face rising costs that impact the competitiveness of livestock production in the EU,” said a market analyst, as reported by InfoSAWIT from S&P Global Platts on Monday (March 17, 2025).
The European Feed Manufacturers Federation has also warned that rising tariffs could increase feed prices and put pressure on meat and dairy producers in the region.
However, some traders argue that the impact of the tariffs on corn prices in the EU will be limited. Many market players have anticipated this policy and have begun shifting their supply sources to Ukraine, although the US remains the cheapest corn supplier.
The implementation of these tariffs is expected to accelerate the shift of EU import sources from the US to other countries, such as Brazil and Argentina. A market expert noted that Brazil has increased its corn exports at more competitive prices and with stable production.
“Brazil, Argentina, and Ukraine are well-positioned to replace US corn in the EU market,” said a trade source.
However, despite these competitive alternatives, logistical challenges and quality differences may hinder the complete replacement of US supplies. Industry players are also considering the EU's potential to explore more sustainable or locally produced feed solutions, although this approach requires time and significant investment. (T2)
