Supply Lines: Trouble in River City

This morning brings a lot of headlines about the US's trade wars against Canada, China and Mexico, and the economic harm that will befall th

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This morning brings a lot of headlines about the US's trade wars against Canada, China and Mexico, and the economic harm that will befall the automotive and electronics industries and all the people they employ. But there's one news outlet's front page that shouldn't go unnoticed in the debate over President Donald Trump's widening tariff barrage against the country's top trading partners. "Trump: As tariffs loom, farmers should 'have fun' selling goods in the US," teases the lead story in the online version of the Des Moines Register. It's a reference to Trump's social media post shortly before he announced on Monday that 25% tariffs on Canada and Mexico will take effect Tuesday, along with another 10% tax on Chinese imports. Read More: Canada Retaliates, Puts Tariffs on $107 Billion of US Products As the Iowa newspaper report continues, it's clear farmers don't find protectionism amusing. As Aaron Lehman, president of the Iowa Farmers Union board is quoted as saying "losing reliable trade markets is not fun for farmers." "Farmers invest in building good trade relationships," he continued. "And unfortunately, they can be undone very, very quickly. I'm afraid that's what's happening." Read More: Xi Leaves Door Open for Talks With Measured Response to Trump Farmers in Iowa and elsewhere will be a good political and economic weathervane to monitor if this North American trade war drags on for months — they're often examples of how tariffs can backfire, hit unintended victims, or alienate key electoral constituencies. Canada produces a lot of potash used in fertilizer that's exported to the US and now faces the prospect of a 25% tariff. China is a big consumer of American-grown soybeans, and Beijing was quick to target that major crop with a 10% tariff in its response to Trump on Tuesday. As they turn on their radios this morning, farmers across the Midwest will hear something they don't like to hear heading into planting season: Soybean futures are falling partly because of a trade dispute with a key market for their crops. In the meantime, their competitors in Brazil are eyeing a record harvest this year. —Brendan Murray in London Click here for more of Bloomberg.com's most-read stories about trade, supply chains and shipping.

Charted Territory

The list keeps growing | Here's an update list of Trump's trade actions and threats.

Today's Must Reads

Indian Prime Minister Narendra Modi said the changes in the global economy and trade could be an opportunity for Indian firms to invest more and take advantage of the world's need for alternative supply chain hubs.  Trump's comment on China's currency policy is strengthening the case for the central bank to stick to its strategy of keeping the yuan stable, even in the face of a looming trade war. Japanese Prime Minister Shigeru Ishiba denied that Tokyo is trying to weaken its currency. Beijing will impose tariffs on a slew of US farm products as part of its countermeasures against Washington, threatening to disrupt a key portion of trade between two agricultural powerhouses. Trump announced that the US will impose tariffs on agricultural imports starting April 2, telling American farmers to "Get ready to start making a lot of agricultural product to be sold INSIDE of the United States." Australian officials will meet with local authorities this week to discuss the future of the Port of Darwin, currently leased for 99 years to Chinese-owned company Landbridge Group, as concerns remain over foreign ownership of the strategic asset. Foxconn's planned mega-AI server plant near Guadalajara, Mexico, will complete construction in a year despite the threat of new tariffs by the US, according to Jalisco Governor Pablo Lemus Navarro. Separately, TSMC plans to invest an additional $100 billion in US plants that will boost its chip output.

On the Bloomberg Terminal

The US has imposed tariffs on Canada, Mexico, and China, raising average US tariffs to rates not seen in decades and increasing stagflation risks for the US, according to Bloomberg Economics. China has taken a targeted approach to retaliating against the latest 10% US tariff on its goods, imposing duties of 10%-15% on US agricultural products and adding US entities to unreliable and export control lists, according to Bloomberg Economics. Run SPLC after an equity ticker on Bloomberg to show critical data about a company's suppliers, customers and peers. Use the AHOY function to track global commodities trade flows. See DSET CHOKE for a dataset to monitor shipping chokepoints.  For freight dashboards, see BI RAIL, BI TRCK and BI SHIP and BI 3PLS Click HERE for automated stories about supply chains. On the Bloomberg Terminal, type NH FWV for FreightWaves content. See BNEF for BloombergNEF's analysis of clean energy, advanced transport, digital industry, innovative materials, and commodities.

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