Global trade could become more complex under the new Trump administration

News

Global trade could become more complex under the new Trump administration

The head of RaboReasearch Food and Agribusiness for North America says global food and agricultural trade could become more complex under the new Trump administration. Roland Fumasi says the proposed tariffs are a triple negative and worrying for the economy of the food and agricultural sector. “All import tariffs have an inflationary effect on certain agricultural inputs,” he says. “So that increases production costs.”

He tells Brownfield that tariffs also have additional negative impacts on the overall economy. “Retaliatory tariffs are a direct burden on our F&A exports,” he says. “But then there’s also this indirect pressure on F&A exports from the stronger dollar, which is likely to happen because interest rates stay higher for longer.”

Fumasi said consumers would be affected if blanket tariffs were imposed on trading partners like Mexico. “Berries, limes and avocados are key,” he says. “Frozen fruits and vegetables coming into the U.S. and Mexico are an important supplier.” Mexico is the top foreign supplier of fresh fruits and vegetables to the U.S., and imports totaled nearly $19 billion in 2022. Dollar.

He says the tariffs could potentially lead to a rise in inflation and a slowdown in economic growth, which could ultimately lead to the Fed suspending its rate cut in 2025.

AUDIO: Roland Fumasi, RaboResearch Food and Agribusiness