Agricultural stocks down after Trump unveils tariffs

FMC

03/02/2025 13:15

** U.S.-listed shares of agricultural commodities traders
fall after President Donald Trump imposed tariffs on goods
imported from Mexico, Canada and China
    ** U.S. imposes 25% tariffs on Canadian and Mexican goods,
including 10% tariffs on Canadian energy imports and 10% tariff
on Chinese imports from Feb. 4
    ** CIBC Capital Markets sees fertilizer and chemicals firms
to be relatively less impacted than other sectors
    ** "As the U.S. is dependent on Canadian potash, we expect
the tariff burden will almost entirely be passed on to the U.S.
consumer (i.e., farmer) in the form of higher fertilizer
prices," - CIBC Capital Markets
    ** Brokerage adds that adverse volume impacts could be felt
if retaliatory tariffs around the world impact global trade
flows of crops and nutrients
    ** "We note that there may be some near-term disruptions to
potash shipments out of Canada," - CIBC added further
    ** Shares of FMC Corp  FMC.N  down 1.4%, Mosaic  MOS.N  fall
2.8%
    ** U.S.-listed shares of Canada-based Nutrien  NTR.N  down
2.7%

 (Reporting by Pooja Menon in Bengaluru)
 ((Pooja.Menon@thomsonreuters.com;))