EU is key market for US soy

The European Union (EU) is the primary market for US soybeans - second only to China.
However, the EU has announced initial retaliatory tariffs in response to US tariff policies. This move is expected to negatively impact US soybean sales.
After Brazil, the US is the world's second-largest supplier of soybeans.
With national production totalling just under 119 million tonnes, approximately 50 million tonnes of US soybeans are expected to be shipped across the world's oceans in the 2024/25 season.
While China is the main recipient, the European Union also imports a significant share, making it the second most important market for the US.
According to data from the EU Commission, the EU purchased a total of 13.1 million tonnes of soybeans from abroad in the past crop year. Of this, approximately 5.9 million tonnes came from Brazil, while 5.3 million tonnes were sourced from the US, representing a share of nearly 41 per cent of total imports.
The picture has been slightly different in the current season. The EU has obtained around 9.6 million tonnes of soybeans from abroad, with the US accounting for the largest share – 5.1 million tonnes, or just over 53 per cent.
Agrarmarkt Informations-Gesellschaft has noted, however, that the Brazilian harvest did not take place until February/March 2025. This suggests that, in the coming months, soybeans will primarily be sourced from South America's 2025 harvest.
Another key factor is the EU Commission's announcement of a 25% penalty tariff on US agricultural products, including soybeans, in retaliation for the additional tariffs the US imposed on steel and aluminium imports.
The tariffs could take effect as of mid-April. Given the ample global supply, EU importers are likely to turn to South American soybean suppliers to meet their needs. Ukraine is also expected to move further into focus as a supplier. In this scenario, the losers would be US soybean producers as they would lose a crucial market.