VAT versus Trump Tariffs Most imports into the U.S. will face an average 15 tariff under Trump trade policy. Critics and news reports warned of disastrous impacts that have thus far failed to develop. This may be due to their relative context. Most countries apply tariffs such as the EU’s average tariff of 8.4 percent for agricultural products. But in addition, 170+ countries apply a value added tax (VAT) that is much more pernicious. That is because an import tariff is paid once and may be dispersed across the supply chain, whereas the VAT is applied at each step in the value chain. For example, a kernel of corn imported into the U.S. pays the duty once no matter its ultimate transformation, but a kernel of corn imported into t...
Key Market Insights Geopolitical Limbo: Geopolitical risk remained a key driver across global commodity markets today. President Trump stated that the Iran memorandum of understanding is not yet final and warned that military action could resume if negotiations fail. Both sides continue w...
Key Takeaways: Drought remains a major threat to global agricultural production, particularly in regions with limited rainfall and growing water scarcity. Commercially available drought-tolerant traits in corn, soybeans, and wheat have generally delivered modest yield improvements, limiting th...
Key Takeaways: Peace at last in the Persian Gulf? Over the weekend, the U.S. announced and Iranian officials confirmed a peace agreement, with formal ratification set for Geneva on 19 June. The announcement means the Strait of Hormuz is set to reopen fully and toll-free within 30 days.&n...
From WPI Consulting
Accountability and a comprehensive approach to export programming
WPI’s team helped construct a strategic approach to develop, implement, and track promotional activities in 8 key regions across the globe for an agricultural export association. With continued progress measurement and strategic advisory services from WPI, the association has seen its ROI from investments in promotional programming increase by 44 percent over the past 5 years. Not only does this type of holistic approach to organizational strategy provide measurable results to track and analyze, it fosters top-down and bottom-up organizational accountability.