Corn prices climb following tariff suspension on Mexico imports

In another chapter of the trade dispute, the U.S. government suspended until April 2 the imposition of 25% tariffs on imports from Mexico. The duties, implemented by the Trump administration, had taken effect on Tuesday (4).

The decision boosted corn prices in Chicago, as Mexico is the largest buyer of U.S. corn. Additionally, demand for U.S. corn remains strong, while Brazil, another key exporter, is still in the off-season.

“The market believes that without the tariffs in place, the U.S. will continue to ship its corn. With less availability, prices tend to rise,” said Luiz Pacheco, an analyst at T&F Consultoria Agroeconômica.

According to Royal Rural consultancy, as Mexico turns to the U.S. for corn supplies following the tariff suspension, the country is expected to reduce its imports of Brazilian corn. The firm also foresees pressure on the Trump administration from U.S. producers seeking a resolution that does not harm domestic grain trade.

The following chart shows Brazil’s corn export volume between January 2021 and January 2025, according to information derived from DataLiner.

Corn Exports | Brazil | Jan 2021 – Jan 2025 | WTMT

Source: DataLiner (click here to request a demo)

“Farmers in Illinois and Iowa, major hubs for soybean and corn production in the U.S., have been increasing pressure on Trump to resolve trade disputes with Mexico, Canada, and China. The sector fears prolonged losses if tariff tensions persist,” the consultancy noted.

Speculation surrounding Mr. Trump’s tariff policies also weakened the dollar in global markets, which supported grain prices. In addition to corn, May soybean futures climbed 1.53% to $10.2725 per bushel, while May wheat rose 1.05% to $5.54 per bushel.

“Prices had room to rise even further if not for the uncertainties surrounding the trade dispute. There is still room for funds to recover from last week’s declines,” said Mr. Pacheco of T&F.