Agricultural stocks fall as Trump unveils tariffs

Nutrien

03/02/2025 15:05

(Updates)
    ** Shares of agricultural commodities traders fall after
President Donald Trump imposed tariffs on goods imported from
Mexico, Canada and China
    ** FMC Corp  FMC.N  down 5.1%, Mosaic  MOS.N  falls 5.8%,
Corteva  CTVA.N  down 2.8%
        ** Shares of Canada-based Nutrien  NTR.TO  down 2.7%
  
    ** 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 expects 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," says 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," says CIBC 
    

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