North America, Processing, fries, chips, Trade/Markets/Prices, Trends

US: A ray of hope in trade wars

According to the National Potato Council in the US, there were various reports last week that the Administration is considering options to end the steel and aluminum tariffs the U.S. levied against Canada and Mexico.

Such an action by the U.S. could come in conjunction with the signing of the USMCA (NAFTA 2.0) slated for a side meeting at the G20 Summit in Argentina in early December.

Retaliatory tariffs placed on U.S. frozen potato exports to Mexico have encouraged Mexican purchasers to shift to frozen product from Canada and the EU. Sales of U.S. frozen potato products to Mexico in September 2018 were down more than 25 per cent compared to September 2017.

It is not clear whether the Administration is considering dropping the tariffs all together or instead substituting quotas as a mechanism to resolve the tariff dispute.

Source: National Potato Council

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