Agricultural sectors in Latin American countries could benefit from US tariffs
As US President Donald Trump imposes new tariffs on more nations, agricultural markets in some Latin American countries could take advantage of the gaps left by global supply chains in the region
US tariffs on major powers and other countries around the world could allow nations like Brazil, Argentina, Paraguay, and Uruguay to benefit by filling the gap in large supply chains, particularly in the agricultural market.
These Latin American nations could take advantage of the trade war to emerge as new agricultural suppliers. Brazil, Argentina, Paraguay, and Uruguay “can benefit from the current tensions between economic powers by positioning themselves as alternative grain suppliers to the U.S. for major importers like China,” according to Máximo Torero, chief economist of the Food and Agriculture Organization of the United Nations, in an interview with Bloomberg Television last Tuesday.
According to the official, the region is experiencing a two-pronged situation: while on the one hand, “prices for basic commodities like wheat, corn, and soybeans remain stable, retail food prices are high due to the inflationary impact of other input costs like energy and transportation.”
M.Pino
Source: finanzasdigital
(Reference image source: Wouter Supardi Salari on Unsplash)
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