News

Strong corn demand expected to continue for Mexico, despite potential new tariffs

A grains and oilseeds economist says he expects demand for corn to remain strong in Mexico, even amid potential new tariffs from the Trump administration.

Tanner Ehmke with CoBank tells Brownfield he doesn’t expect that to change much.

“I’m optimistic that we’re going to maintain that export pace into Mexico because of their supply demand situation. They are short on stocks and because we have not seen an all out trade war with Mexico unfurl.”

He says replacing U.S. corn imports from countries like Argentina or Brazil could prove more challenging for Mexico.

“It’s not impossible. It’s just a more complicated trade because the corn has to be loaded onto boats and then sailed to one of the coastal ports in Mexico and then the loaded onto a rail and delivered inland,” he says.

Ehmke says Mexico may prefer the simpler trade process with the U.S. even if there are new tariffs imposed.

Trump has said he plans to impose 25% tariffs on imports from Mexico and Canada beginning March 4th.