Trump fees and reactions threaten US dairy exports

President Donald Trump’s trade war threatens the export of US dairy at a time when the sector needs strong new markets to drain increasing production. According to the US data, the United States exported dairy products worth $ 8.2 billion and is the second highest level in history. The companies have built and expanded their factories in the hope of increasing exports more. But with China and Canada imposing retaliatory definitions on some US dairy products, the future of the industry in foreign markets has threatened. “The US market will not be able to accommodate this additional production, especially if exports fall,” said Shona Morris, deputy executive chief of commercial policy and global affairs at the National Federation of Milk Producers. ‘Cell shipments abroad will become more important than ever.’ More than half of US dairy exports are on their way to Mexico, Canada and China, all targeted by Trump’s customs policies. Revenge Against America and Canada have already imposed 25% revenge fees on cheese, butter and US dairy products, while China imposed 10% definitions on some milk products. Trump is expected to announce the so -called “exchange fee” on commercial partners on Wednesday, and it is expected that 25% fees after the delay will be subject to the United States trade agreement, Mexico and Canada. Although the retaliation definitions remain the ‘basic concern’, the dairy sector also awaits how the president can use this influence and threaten him with additional measures to achieve real changes, ‘according to Chouna Morris, deputy executive head of commercial policy and global matters in the national union of milk producers. She explained, for example, that Canada has a system that limits the amount of dairy products that can be imported with low definitions, which are considered by American producers who have long been unfair. Poor sales and activities The prices of dairy contracts for dairy products have dropped until June, as they were influenced by ‘poor sales’ due to the threat of definitions and a decrease in the general activity of restaurants, according to Curie Jager, the chief economist in the dancer sector at the ‘Cobank’, a bank specializing in financed farms. The futures for milk circulating on the Chicago Stock Exchange have also dropped to the lowest level since April 2024, while the prices of ‘whey’ recorded their lowest level in five months. In addition, there are concerns that the fees proposed on the ships run by China can greatly increase the cost of dairy exports, which puts US producers and exporters in a difficult position, “according to a joint letter from the” American Dairy Export Council “and the” National Federation of Milk Producers “to the US commercial representative. The letter indicated that about 40% of US dairy exports were sent over the sea. “We are ahead of a double -edged sword, there is an uncertainty about reciprocal fees, as well as concerns about possible fees on some ships that will be in US ports,” said Rabobank chief dairy analyst Lucas Fos. He added: “In the end, it’s just another proposal that adds more uncertainty to world trade and US exports.”

Exit mobile version