Soybeans seen as most affected among U.S. grains from Trump’s latest tariffs

U.S. President Donald Trump's new tariffs on Chinese goods are expected to have the greatest impact on soybeans, with traders predicting a sharp decline in futures while wheat and corn remain nearly stable. The additional 34% tariff could decrease demand for U.S. soybeans, but the effect may not be immediate due to China's interest in Brazilian beans. Grains are also potentially targets for counter-tariff retaliation, and the American Farm Bureau Federation warns that tariffs could harm U.S. farmers' competitiveness and cause long-term damage.

Soybeans likely will feel the strongest fallout from tariffs, traders determined Thursday after spending the session processing what President Trump’s new “reciprocal” tariffs will mean for U.S. grains, sending soybean futures sharply lower while wheat and corn finished nearly flat. “China is a major importer of U.S. soybeans and while their buying tends to shift to Brazil at this time of year, demand going forward could be heavily impacted,” Tomm Pfitzenmaier of Summit Commodity Brokerage wrote. The additional 34% tariff levied on Chinese goods is expected to cut into demand for U.S., but the timing of the announcement means that the impact may not be immediate, according to analysts. “China is out of the market for U.S. beans right now anyway,” StoneX analyst said, noting that China at this time of year is more interested in procuring Brazilian soybeans, as Brazil’s harvest of its soybean crop nears its end. Analysts also said grains are a ripe target for counter-tariff ...