Pork Producers, Corn Growers Urge Trump to Drop Mexico Tariffs

(Bloomberg) -- U.S. farm groups are complaining about President Donald Trump's decision to announce new tariffs on a top buyer of their pork, corn and wheat.

The president said Thursday that 5% duties could be placed on all imports from Mexico on June 10, rising in increments to 25% in October unless Mexico halts the flow of immigrants heading to the U.S. border.

“We appeal to President Trump to reconsider plans to open a new trade dispute with Mexico,” David Herring, president of the National Pork Producers Council and a hog farmer from Lillington, North Carolina, said Friday in an emailed statement. “American pork producers cannot afford retaliatory tariffs from its largest export market, tariffs which Mexico will surely implement.”

Mexico is the largest buyer by volume
Trade disputes with Mexico and China already have cost U.S. pork producers $2.5 billion over the past year, Herring said
Lean hog futures on Friday closed down 2.2% to 85.925 c/lb, for the fifth monthly drop in the last six months

Corn, Grains

“Amid a perfect storm of challenges in farm country, we cannot afford the uncertainty this action would bring,” National Corn Growers Association President Lynn Chrisp said in an emailed statement. He said the president should “reconsider using tariffs to address non-trade issues.”

The Mexican market is “very important to our products,” said Tom Sleight, chief executive of the U.S. Grains Council. Nervous farmers, who have been supportive of the president, are “watching closely,” Sleight said.

Mexico is the largest export market for U.S. corn
Corn futures in Chicago fell 2.1% while wheat slipped 2.2% on Friday amid concerns that Mexico will retaliate against the latest tariff threat

Dire Dairy

“Dairy farmers and the dairy industry were looking forward to a resumption of robust trade with Mexico, our number-one market, which could be negatively impacted if tariffs are assessed,” Tom Vilsack, president and CEO of the U.S. Dairy Export Council and former U.S. Secretary of Agriculture, said in an email.

In 2018, exports made up 15.8% of U.S. milk production on a total milk solids basis, the highest figure ever, according to data compiled by the council
U.S. dairy exports to Mexico rose 7% to $1.4 billion in 2018, according to the council

--With assistance from Mario Parker.

To contact the reporters on this story: Mike Dorning in Washington at mdorning@bloomberg.net;Shruti Date Singh in Chicago at ssingh28@bloomberg.net

To contact the editors responsible for this story: Joe Sobczyk at jsobczyk@bloomberg.net, ;James Attwood at jattwood3@bloomberg.net, Tina Davis, Simon Casey