The market has some anxiety over the potential tariffs that could take effect this weekend. Matt Tranel, a dairy analyst with Ever.Ag, says all of agriculture is keeping an eye on Feb. 1 as the declared beginning of potential tariffs.
He recalls in 2018, Mexico put tariffs on the U.S. as NAFTA was under renegotiation.
“We’re either going to learn that we have tariffs with some of our major trading partners or that might have been just rhetoric thrown at the wall,” Tranel says. “If we do end up putting on tariffs this weekend… you could see some price decreases next week with those tariffs.”
He cautions that Europe is currently working with Mexico on a Free Trade Agreement, signaling that other countries are looking at trade wars as an opportunity to get in with the U.S.’ major buyers.
