EU feed sector to suffer from likely US soybean tariff

The European animal feed industry is warning of supply problems if U.S. soybean imports are cut amid a escalating trade war between Brussels and Washington.

European Union lawmakers are set to restrict about €26 billion ($28.2 billion) in U.S. imports after President Donald Trump imposed a 25% levy on steel and aluminum imports. The bloc is targeting “politically sensitive products” from Republican-led states, including soybeans, Bloomberg reported.

“The move could disrupt vital feed supply chains as the EU continues to rely on imports of protein-rich feed products like soybeans,” Pedro Cordero, president of a European feed industry group, said this week.

Europe is the second-largest destination for U.S. soybean exports, with $2.4 billion in 2024 purchases of the beans, according to the U.S. Department of Agriculture.

Potential EU tariffs would be “unfavorable for Europe,” industry analysts say, with heightened trade tensions certain to put pressure on U.S. soybean crops, given that selling beans to China next year will be less economically feasible amid China’s 10% tariffs.

The American Soybean Association (ASA) previously predicted that farmers in the U.S. would inevitably have to cut back on their production, while South America would fill the void. Another trade war, experts say, would result in a permanent erosion of market share for U.S. soybeans.

Tags: EU, soybean, USA, compound feed