BUZZ-Agricultural stocks down after Trump unveils tariffs

Reuters
02-03
BUZZ-Agricultural stocks down after Trump unveils tariffs

** 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;))

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