EU tariffs on US grains to hit livestock sector, industry group says

European Union Tariffs on U.S. Grains Could Impact Livestock Sector, Says FEFAC

PARIS (Reuters) – European Union tariffs on U.S. grains, as part of the bloc’s response to Washington’s levies on steel and aluminium, would have a detrimental effect on the European livestock sector, which heavily relies on imports for animal feed, according to industry association FEFAC.

A significant EU trade surplus with the United States in agriculture has been a point of contention for U.S. President Donald Trump. However, the United States remains the EU’s largest supplier of soybeans and a major provider of corn.

The European Commission recently announced plans to impose additional duties on up to 26 billion euros ($28 billion) worth of U.S. imports.

This would involve re-imposing tariffs on products like corn from April 1, which were previously suspended during a prior trade dispute in Trump’s first term. Additionally, duties would be imposed from April 13 on items from a new list that includes soybeans.

FEFAC President Pedro Cordero expressed concern that such tariffs would negatively impact the resilience and competitiveness of EU livestock production systems.

FEFAC, representing manufacturers of livestock feed, suggested that feed grains could play a role in facilitating a negotiated settlement between the EU and the U.S. to avoid tariffs.

Cordero highlighted the potential for EU imports from the U.S. to double from the current 4 billion euros to 8 billion euros, thereby reducing the existing U.S. agricultural trade deficit with the EU.

The currently suspended 25% tariff on U.S. corn could make American corn less competitive in major European importing countries like Spain.

On Wednesday, Chicago corn and soybean futures experienced a decline, with traders citing concerns that U.S. farm exports may suffer from Trump’s tariff policies, compounded by the EU’s retaliatory measures.

(Reporting by Gus Trompiz; Editing by Mark Potter)