On 04 March 2025, CBOT corn futures fell to their lowest level since early December 2024, while soybean prices hit their weakest since early January 2025.

The United States imposed a 25% tariff on imports from Mexico and Canada after a one-month delay, while also increasing tariffs on Chinese goods by an additional 10 percentage points, bringing the cumulative levy to 20%.

In response, China imposed counter-tariffs on U.S. agricultural imports, applying a 15% duty on products including wheat and corn and a 10% duty on products including soybeans.

China, a key buyer of U.S. soybeans, could see trade volumes decline due to the import tax. The country is also a major importer of U.S. corn, but recent months have seen muted purchases, with China largely meeting its reduced demand with Brazilian supplies. The new tariffs may further curb U.S. corn exports to China, benefiting Brazil. Brazil appears to be the main beneficiary of the ongoing trade tensions, with its abundant corn and soybean production and an established role as a key supplier to China.

Meanwhile, Canada has announced countermeasures, imposing a 25% tariff on C$155 billion worth of U.S. goods, further heightening trade tensions.