Global markets are witnessing increasing disturbances with the escalation of trade tensions between the United States and its main partners, amid expectations of widespread impacts on supply chains and food prices.
According to a report published by the Bloomberg Agency, the trade conflict between the United States, both Mexico, Canada and China may lead to a significant increase in food prices, and the disruption of the flow of agricultural products across the border.
Trump waved the possibility of imposing customs duties on other partners such as Japan, Britain and the European Union.
Serious repercussions on food supplies
Mexico and Canada are the main commercial partners of the United States in the agricultural sector, where they acquire nearly half of the exports of American agricultural products, and with the announcement of President Donald Trump’s administration plans to impose customs definitions on imports from these countries, analysts warned that this would lead to a disturbance of food markets and increase Inflation.
In the Bloomberg report, Elina Ping, Kim Chipman and Michael Hirtzer stated in the Bloomberg report that these steps may affect the prices of vegetables, fruits, corn, soybeans and pork, which will create a supply crisis, and weighs consumers at higher prices.
Vegetables and fruits … a sharp rise in prices
Mexico and Canada are the main suppliers of fresh vegetables for the United States, which constituted 90% of the total American imports of fresh vegetables, in addition to more than half of fresh fruit shipments in 2023.
If the commercial escalation continues, it is expected that the prices of avocado, tomatoes and berries will rise, as the American market depends almost completely on Mexico to import these products, as the latter supplies more than 90% of the total consumption of Americans from avocado.
In the event that customs definitions are imposed on Canada, this may constitute a fatal blow to the manufacture of orange juice in Florida, which is already facing a sharp decline in demand since the 1990s, due to changes in eating habits and increased consumer awareness of sugar content in juice.
Corn and meat … a threat to American producers
Mexico is the largest importer of American atom, the most prevalent agricultural product in the United States, and according to the report, Mexico’s imposition of retaliatory definitions may harm Tyson Foods and Smithfeld Foods companies, which depend on meat exports to Mexican markets.
Experts stated that Mexico may find it difficult to find an alternative to the American atom, but the definitions may lead them to search for new suppliers in South American countries, which increases the isolation of American farmers and harms their sales.
Soybeans … a commercial war with China
Soybeans were at the heart of the previous trade war between the United States and China, as Beijing from American soybeans fell 79% during the first two years of Trump’s first state.
If this crisis is repeated, this may lead to a sharp decrease in the income of American farmers, who are already suffering from economic pressure from high production costs.
A sharp increase in the prices of fertilizers and energy
Among the concerns raised by commercial wars is the increase in the costs of fertilizers and energy, which will negatively affect agricultural production.
The commercial conflict adds more uncertainty to the grain markets, where Bonghe, one of the largest agricultural commercial companies in the world, expected its profits this year to the lowest level since the pre-“Kofid-19”, which reflects the effects of the trade war on the global agriculture sector .
Political and economic consequences
Bloomberg reports indicate that the impact of these commercial wars will not only be economical, but will affect the political scene in the United States, as the Trump administration faces increasing pressure from farmers, Republican and Democrats alike.
“We are ready to take counter -action to protect our interests, and we will not stand idly by any economic threat,” said European Commission President Usula von der Line, in a comment on the US measures.
Do you lead commercial wars to a global food crisis?
As commercial wars continue, fears of a global food crisis increase as a result of supply disorder and high prices.
Data shows that global agricultural trade has become more integrated and tangled than ever, which means that any disruption in commercial flows can have long -term effects on global food security.
The most important question remains: Will the United States and its allies be able to find solutions to alleviate commercial tensions, or will global markets face a new shock that leads to high prices and the exacerbation of the food crisis?
