EU Tariffs on U.S. Grains Could Impact Livestock Sector, Warns Industry Group

The European Union's plan to impose retaliatory tariffs on U.S. agricultural products, including corn and soybeans, is raising concerns within Europe's livestock industry. The tariffs are set to be introduced in response to the Trump administration's recent duties on steel and aluminum, affecting approximately €26 billion ($28 billion) worth of U.S. imports. This decision risks severely disrupting the livestock sector, which heavily relies on imported grains from the U.S. for animal feed.

The Feed Manufacturers' Association (FEFAC) has expressed significant concern, warning that the tariffs could adversely affect the resilience and competitiveness of European livestock producers. Currently, the U.S. is Europe's largest soybean supplier and a critical source of corn imports. The reintroduction of a previously suspended 25% tariff on U.S. corn, in particular, could price American corn out of key European markets such as Spain, which heavily depend on imported grain for animal feed.

FEFAC President Pedro Cordero has urged both parties to negotiate a solution that avoids tariffs, emphasizing that Europe's reliance on U.S. feed commodities offers room to expand agricultural imports from the current €4 billion to around €8 billion, thereby reducing the trade imbalance that partly motivated the tariffs. Analysts are already observing downward pressure on Chicago corn and soybean futures as concerns mount over potential disruptions in U.S. farm exports.

As tensions between the U.S. and EU escalate, European livestock producers face increased uncertainty, which could translate into higher production costs and reduced competitiveness in global markets. The coming weeks will be critical, as stakeholders on both sides of the Atlantic closely monitor the situation and advocate for negotiated solutions to mitigate potential impacts on the agricultural trade landscape.