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If U.S. Imposes Import Tariff, Mexico Prepared to Look South for Corn

If President Trump follows through on his promise to impose a 20 percent import tariff on Mexican imports to fund the construction of a border wall, the Mexican government has declared that it will source its corn and other crops from alternative South American suppliers.

Mexico imports 11 million tons of corn per year – all currently supplied by the U.S. However, a move by Mexico to shift its trade to South America could impact not only corn, but soybean, rice, beef, poultry, and hog trade between the two countries.

Anxiety is running high across multiple industries as many questions remain unanswered, including the timing of the possible tax, which may not materialize until 2018, and the weather in Brazil, which will greatly impact the volume of alternative available grain for trade.

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