Former US President Donald Trump's plans to impose new tariffs on imported agricultural products have raised concerns among European food producers. The potential changes could have a significant impact on the European Union's agricultural sector, which is heavily dependent on the US market.
As reported by Bloomberg, Trump in his statement called on American farmers to prepare to increase domestic production and stressed that the new tariffs will come into effect on April 2. His policy of tariff protectionism creates uncertainty on global markets and threatens large-scale changes in supply chains.
European exporters are already analyzing which sectors could suffer the most losses. The US is an important market for the EU, and the volume of European agricultural products supplied to America significantly exceeds food imports from the US to Europe. This means that European producers could find themselves in a more difficult situation.
According to Rabobank, the agricultural machinery sector will be the most vulnerable to tariff restrictions. European tractor and combine harvester manufacturers may lose American customers, as US farmers, given the high costs, are likely to prefer local equipment.
Certain categories of agricultural products may also be affected by tariffs. For example, European oil may lose competitiveness in the US market, which will force importers to look for alternatives, such as suppliers from New Zealand. At the same time, premium products, in particular expensive cheeses, may adapt more easily to the new conditions due to stable consumer demand.
European companies are currently considering various options for responding: from a possible increase in prices for US importers to the transfer of production to America. It is expected that changes in US trade policy will have not only local consequences, but also affect the global economy, causing changes in global supply chains.
agrinews.com.ua