How US Tariffs Are Affecting Commodity Prices Around the World

Since 2025, new US tariffs have caused major disruptions in global markets. These trade rules have changed the way goods like food, metals, and energy are bought and sold, affecting countries far beyond the US.

Agriculture: Big Changes for Farmers and Food

Soybeans Hit Hard

US soybean farmers have lost one of their biggest customers: China. In response, South American countries like Brazil and Argentina have stepped in to sell more soybeans to China, leaving US farmers struggling to find buyers.

Grains and Food Prices Rise

The price of corn and other grains has gone up, making food more expensive worldwide. This affects not only consumers but also farmers who rely on these crops.

Meat and Dairy Also Rise

Meat and dairy prices are increasing because of disrupted trade. Countries like Brazil are exporting more beef to replace US products, changing global supply patterns.

Metals: Higher Prices for Steel, Aluminum, and Copper

Steel and aluminum prices have gone up sharply due to tariffs, making it more expensive to build cars, homes, and industrial projects. Copper markets have also become unpredictable, disrupting manufacturers who rely on these materials.

Energy: Natural Gas and Oil

Trade tensions have affected energy too. US natural gas exports to China stopped temporarily, forcing suppliers to find new buyers in Europe and Asia. Oil prices have also become more unstable due to related sanctions, making fuel and energy costs less predictable globally.

Fertilizers: Farming Costs Increase

Tariffs on fertilizers have made these essential farm supplies more expensive. This increases the cost of growing crops and could lead to higher food prices in countries that rely heavily on imports.

Global Impacts

• Supply Chains Shift: Companies are looking for alternatives to US and Chinese suppliers, often choosing countries like Brazil, Argentina, or Southeast Asian nations.
• Rising Prices for Consumers: Tariffs contribute to inflation, meaning everyday goods like food, cars, and household items cost more.
• Winners and Losers: South American countries are benefiting from increased exports, while US producers may permanently lose market share.
• Food Security Risks: Developing countries are most affected, as higher food and fertilizer prices make it harder to ensure enough food for everyone.

Overview

These tariffs aren’t just temporary trade measures—they’re reshaping how global trade works. They are influencing what we pay for food, energy, and manufactured goods, and could have long-lasting effects on farmers, businesses, and consumers worldwide.