Market-related

First in a blog series examining the potential consequences of the newly proposed U.S. tariffs for global agrifood trade.

Fertilizer prices experienced a significant surge in 2021, driven by the post-COVID 19 global economic recovery. Russia’s February 2022 invasion of Ukraine propelled prices even higher. Broad economic sanctions on key fertilizer exporters Russia and Belarus exempted agricultural products but triggered further economic disruptions. Overall, the conflict heightened market uncertainties regarding the availability of potash, phosphate, and nitrogen-based fertilizers in international trade.

Rising vegetable oil, cereal, sugar, and dairy prices drove the FAO Food Price Index up by 1.6 percent in February. However, overall prices remain almost 21 percent lower than the peak seen in March 2022.

With new U.S. tariffs on Canada and Mexico now in effect, what are the potential impacts on trade among those countries and across the Western Hemisphere?

Global agricultural markets have been in a constant state of uproar over the past five years. Trade wars between major trading nations such as China, the United States, and Australia, supply chain disruptions due to the COVID-19 pandemic, Russia’s war in Ukraine, crisis in the Middle East, and export restrictions in many countries have diverted supplies, altered trading patterns, and increased price volatility, which often makes markets less efficient and more costly.