Source: Oleoscope (Russia)
The animal feed sector in Europe has issued a caution regarding potential supply issues that may arise if imports of soybeans from the U.S. decline as a result of the intensifying trade conflict between Brussels and Washington.
Following President Donald Trump’s imposition of a 25 percent tariff on steel and aluminum imports, European Union legislators are planning to impose restrictions on approximately 26 billion euros ($28.2 billion) worth of American goods. Bloomberg has reported that the EU aims to oversee shipments of “politically sensitive goods” from states governed by Republicans, with soybeans included among these items.
Pedro Cordero, president of the European Feed Industry Group, stated this week that “this action could jeopardize crucial feed supply chains, as the EU remains reliant on imports of protein-rich feed products such as soybeans.”
The U.S. Department of Agriculture indicates that Europe ranks as the second-largest importer of American soybeans, with purchases projected to reach $2.4 billion in 2024.
Industry experts have commented that any potential tariffs from the EU would be “detrimental for Europe,” and rising trade tensions are likely to exert pressure on U.S. soybean cultivation, as selling beans to China will become less economically feasible next year due to newly imposed 10% tariffs from China.
The American Soybean Association (ASA) has previously warned that U.S. farmers will inevitably have to cut back their production levels, while South America is expected to fill the gap in the market. Experts suggest that another round of trade disputes will lead to a lasting decrease in market share for American soybeans.