Market Intel
China Tariff Extension…
But Which Imported Ingredients Tariffed? Tweaked? Exempted?
With a widespread 10% tariff on imports already in place, last week’s 90-day extension for additional tariffs on Chinese imports is something like 90% of short-term relief. Most of the U.S. feed industry’s micro ingredients currently come from China.
China not withstanding, most foreign feed ingredient exporters and U.S. importers are struggling with pricing as they tighten margins and swallow the new tariff costs. Some vendors are dropping prices in order stay in the game.
But the tariff playing field is bumpy and confusing — especially for micro ingredients sourced from China.
Amino acids: New tariff rates do not apply to lysine and threonine — aka “tariff exempt” — but they do apply to tryptophan. Market Intel sources note significantly lower lysine prices for Q3 offers, while at least one shipment from China reportedly was rejected for off-spec quality. DL methionine prices are steady but the hydroxy analog supply remains tight with deliveries under allocation for the rest of 2025.
Vitamins: Another uneven China tariff field where vitamins A and E are tariff exempt (with prices steady to lower) while vitamin D3 and the B vitamins are non-exempt (with Chinese suppliers holding FOB costs down ).
Trace minerals: By and large, tariff exempt. Last month’s sharp price rise for copper sulfate has abated given general uncertainty over industrial growth. Zinc sulfate prices remain steady.
Fat products: Pricing for animal-vegetable fat blends is slightly higher, but with adequate supplies going into summer.
Soybean meal: SBM board prices are moving sideways within a narrow range. In the eastern corn belt, it looks like more corn, less beans in the ground. However, sizable harvests in Brazil and Argentina are keeping a lid on meal prices, despite scheduled shutdowns at processing plants. Unknowns affecting SBM pricing also include renewable fuel needs and global demand.
Canola meal: If there is a Canada tariff pricing effect, it’s muted. Prices for canola meal are weaker despite fairly tight supply due to processing plant seasonal shutdowns.
Blood products: Prices are down dramatically for bloodmeal and amino acid preblends. The normal seasonal pattern sees the rise in summer. However, there are uncertainties over reciprocal tariff effects — less U.S. pork and beef exported to China.
Whey: Whey prices are down with depressed milk prices.
Distillers: DDGS prices are up in Ohio but steadier in Indiana. Market Intel sources note the geographical influence of seasonal ethanol processing shut downs. Rule of thumb: DDGS pricing runs about 85% of cash value of corn.
Wheat midds: Prices are lower even with soy processors in the midst of spring shutdowns.
Soy hulls: Prices are steady with adequate supply-to-demand, but likely to be lower in the months ahead.
Over the horizon… Tariff-induced supply chain adjustments will not echo the pandemic disruptions five years ago. Nonetheless, West Coast ports already see fewer container vessels coming in from Asia….