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How Trump's Second Term Tariffs Could Change Illinois Agriculture


Agriculture

Trump's Tariffs: Impact on Illinois Agriculture in 2nd Term

In light of growing competition from Brazil, Donald Trump's proposed higher tariffs could affect soybean and corn exports, posing new challenges for Illinois farmers.

Illinois agriculture is among the many American industries that have been severely impacted by Donald Trump's tariffs. Trump has suggested raising tariffs during his second term, including a 25% duty on products from Canada and Mexico and a 60% increase on imports from China.

Fourth-generation Champaign County, Illinois, maize and soybean farmer JC Reitmeier says previous tariffs generated questions about future trade policy but had no direct effect on him. Illinois, a major producer of maize and soybeans, depends mostly on exports, particularly to China, which are the state's biggest buyer of soybeans and the third-largest importer of corn.

Tariffs on Chinese commodities during Trump's last term sparked retaliatory actions that negatively impacted U.S. agricultural exports. South America, especially Brazil, which surpassed the United States as the largest supplier of soybeans to China, became the preferred destination for Chinese consumers.

Experts caution that further tariffs may cause this disparity to grow even worse. Joe Janzen, an agricultural economist at the University of Illinois, points out those previous tariffs increased the price of Brazilian commodities while driving down the price of U.S. soybeans. If additional trade restrictions are implemented, Brazil is ready to supply China's demand, which presents a problem for American farmers, according to researcher Joana Colussi.

The dynamics of global trade continue to change, making it difficult for Illinois farmers to regain market share. In the face of intense global competition, Reitmeier highlights the necessity of strategic initiatives to restore exports and stabilize crop prices.


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