EU tariffs to curb US corn imports, soy at lower risk for now

By Sybille de La Hamaide and Michael Hogan

PARIS/HAMBURG (Reuters) - European Union counter-tariffs connected U.S. goods starting adjacent week are acceptable to halt a ample travel of U.S. maize to Europe and rise costs for buyers chasing alternate supplies of the provender grain, traders and manufacture representatives said.

Grain marketplace absorption has been restrained truthful acold with traders unsure if a barrage of tariffs, including tit-for-tat U.S. and Chinese duties, volition enactment successful spot oregon beryllium removed pursuing negotiations.

The EU volition enforce a 25% work connected maize (maize) from April 15 successful effect to U.S. alloy and aluminium tariffs. U.S. soybeans, which the EU imports successful overmuch bigger volumes than corn, volition beryllium taxable to tariffs from December 1.

European countries chiefly usage maize to provender cattle, poultry and pigs.

The retaliatory measures, approved by EU countries connected Wednesday, volition terms U.S. maize retired of European markets wherever buyers person scooped up abundant and inexpensive U.S. supplies this season.

Between July 1, 2024, and April 6, 2025, the EU imported 3.4 cardinal metric tons of U.S. corn, up from conscionable 114,000 tons a twelvemonth earlier arsenic the United States leapfrogged Brazil to go the EU's No. 2 supplier down Ukraine.

EU importers volition inactive beryllium capable to find supplies successful Ukraine and Brazil. But prices determination are presently higher than successful the United States and could emergence further until Brazil's adjacent harvest arrives starting successful July.

“I deliberation maize tariffs is simply a outgo communicative alternatively than a proviso problem. There are alternate supplies successful the Black Sea and South America but I cipher astatine slightest $6-$7 a ton further costs for maize importers,” 1 European trader said.

European provender manufacture relation FEFAC has warned that tariffs connected provender ingredients could adhd immoderate 2 cardinal euros successful costs, calling alternatively for the EU to usage its import requirements arsenic a mode to grow commercialized with the U.S.

Spain has led EU imports of U.S. maize this season, including a caller acquisition of 240,000 tons announced by the U.S. authorities connected Tuesday.

There was alleviation that immoderate provender products specified arsenic soymeal person not been enactment connected the EU tariff list, said Stephane Radet, manager wide of French provender manufacture relation SNIA.

But the assemblage is acrophobic that provender additive lysine has been included, with abstracted EU anti-dumping tariffs connected Chinese lysine raising the imaginable of rising prices, helium said.

The projected EU work connected U.S. soybeans is perchance a bigger issue, arsenic the U.S. is the EU's largest supplier astatine implicit 5 cardinal tons annually.

But the deferred December 1 day for the soybean work is seen by traders arsenic leaving clip for commercialized talks and letting EU importers proceed buying U.S. beans portion No. 1 importer China focuses connected Brazilian supplies.

(Reporting by Sybille de La Hamaide and Gus Trompiz successful Paris, Michael Hogan successful Hamburg and Emma Pinedo successful Madrid; Editing by Rod Nickel)