President Donald Trump’s plan to hike tariffs on steel and aluminum is raising concerns over trade wars as experts say the new regulations could hurt U.S. consumers, businesses and those in the Agriculture industry due to the potential for prices to rise.

While it’s nothing new that the Ag industry relies heavily on trade, Local Farm Management Analyst Kent Thiesse says nearly 50-percent of soybeans are exported.

“And our biggest export partner is China. Mexico is also up there pretty high. The same with corn, now we don’t export as big of a percentage of corn as we do soybeans, probably more in the 12 to 15-percent. But, Mexico is our biggest export market for corn.”

The beef, dairy and pork sectors all rely on corn for feed, meaning if trade cuts into the livestock markets it could affect the corn market on the backside with lower feed usage, according to Thiesse.

“People probably say, well if we are talking about manufacturing and steel and aluminum, that doesn’t effect Ag. Well what happens in a trade war, the other countries usually try to retaliate on something that they know is important to the United States,” said Thiesse. “We have trade surpluses with Ag products and they like to do something with Ag because it’s highly visible. There were some issues already with sorghum. Now that doesn’t affect us much, we don’t raise much sorghum. But it certainly did in areas where they raise sorghum, because the sorghum price dropped pretty substantially.”

President Trump announced Thursday he was imposing a 25 percent tariff on steel and 10 percent tariff on aluminum on national security grounds.