As the new Trump administration continues to shape, there is still uncertainty swirling around, especially regarding tariffs and trade. Rob Elliott with the Illinois Corn Marketing Board says if trades and tariffs being used negotiating cards are met with retaliation, agriculture will be some of the first industries impacted.
“Canada and Mexico, are huge trading partners for the US, a significant amount of the grains of ethanol, of meats that go into those countries from the US. So certainly we want to keep those relationships intact,” says Elliott. “We do a huge amount of imports from China, but if it’s soybeans, certainly there’s a lot of those that get exported to China. What we have to keep in mind is every time that China decides, hey, we’re not going to buy your product, they go to Brazil and get it. Brazil has become the leading corn exporter in the world. With new business, when they create new demand in Brazil, they get more efficient. As they get more efficient, they grow a bigger crop and become a bigger competitor for us.”
In addition to Brazil, Elliott says China is investing in Africa to help gain easier access to cheaper products.
