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Analyst: markets a “wait and see” for trade tariffs

A market analyst says it’s unclear which countries and products will be included in reciprocal tariffs from the United States and how those countries will respond.

Don Roose is with U.S. Commodities.

“Does it turn into a trade war? Does it turn into more of a cordial type of ‘this is a cap on the U.S.’ as far as tariffs and we’ll start to negotiate down?”

Roose says some countries are already posturing ahead of the news, with Mexico saying they won’t pursue a tit-for-tat trade war

“I think when you’re negotiating, that’s the posture they have to take to start with and we’ll see if anyone backs down a little bit on the Mexican, Canadian or U.S. side.”

He says the countries that buy U.S. ag commodities have already front-loaded grain purchases, preparing for tariffs.

While President Trump’s tariff announcement is scheduled after the grain markets close for the day, Roose says he’s expecting a market response to the news overnight.