President-elect Trump is planning on a 25 percent tariff on Mexico and Canada. It has helped solidify fears of a trade war, but some say retaliatory tariffs could be beneficial for U.S. food producers.
Analysts with JP Morgan say while retaliatory tariffs could lead to higher food prices, they could also create a tailwind for U.S. producers. They say an increase in food prices would likely be short-lived because U.S. manufacturers are not reliant on goods like corn, soybeans, and wheat.
They say if tariffs on U.S. corn increase, global demand would likely fall, allowing U.S. manufacturers to buy grains at cheaper rates.
