New US tariffs create additional risks for trade relations

After the US government announced new tariffs against Canada, Mexico and China, these countries took retaliatory measures that also affect the wheat trade. China imposed an additional 15% duty on US wheat, Canada and Mexico are considering or have already announced retaliatory tariffs on US products.

Canada remains the largest supplier of wheat to the US market (92 thousand tons were delivered last year, which is more than 65 thousand the year before). Mexico, in turn, is one of the leading importers of US wheat (in 2023-2024, it purchased it for $937 million and became the second largest importer in 2024 - $2 billion). China also imports significant volumes of wheat from the US ($570 million in 2024), but is consistently reducing its dependence on American agricultural products.

Thus, new duties and retaliatory measures create additional risks for trade relations and may increase uncertainty in the wheat market.

According to FAS