EU grain tariffs threaten European livestock feed market, industry group warns

The European Commission’s plan to impose additional duties on up to 26 billion euros ($28 billion) of U.S. imports could significantly disrupt Europe’s livestock sector, which heavily relies on imported grains for animal feed, according to industry association FEFAC.

The new tariffs, part of the EU’s countermeasure to Washington’s levies on steel and aluminum, would reintroduce a suspended 25% duty on products such as corn from April 1 and extend additional duties to soybeans and other goods from April 13. FEFAC President Pedro Cordero warned that these measures would "adversely affect the resilience and competitiveness of EU livestock production systems," as higher feed costs could squeeze margins for farmers and meat producers across the bloc.

FEFAC highlighted that feed grains might serve as a bargaining chip in a negotiated settlement between the EU and the U.S. to avoid these tariffs. Cordero noted that with the EU’s current imports of U.S. feed commodities at around 4 billion euros, there is potential to double this figure to 8 billion euros. Such an increase could help reduce the existing U.S. agricultural trade deficit with the EU, which has long been a sticking point in transatlantic trade discussions.

The reimposition of the tariff on U.S. corn is particularly concerning for key European markets. With the 25% duty back in force, major importers like Spain could find U.S. corn prohibitively expensive, further straining the supply chain for animal feed. Market reactions were swift, as Chicago corn and soybean futures fell on Wednesday, reflecting growing apprehension among traders that Trump’s tariff policies and the EU’s countermeasures may dampen U.S. farm exports.

As the trade conflict continues to escalate, the agricultural sector is bracing for potential disruptions. The evolving tariff landscape underscores the complex interplay between trade policy and domestic economic interests on both sides of the Atlantic.

Copied