Relief for Spain's feed makers as EU delays tariff on US corn

MADRID (Reuters) - A delay to EU tariffs against U.S. goods has brought respite for Spain's livestock feed sector that has heavily bought U.S. corn this season, including several cargoes currently at sea, the country's feed makers association said.

The European Union said earlier on Thursday it will pause for 90 days its first countermeasures against U.S. tariffs, after Washington postponed hefty duties on dozens of countries.

That means initial EU tariffs will no longer take effect on April 15, including a 25% levy on U.S. corn that has threatened to halt import flows and raise costs for EU feed producers.

"We are calmer than we were 24 hours ago," said Jorge de Saja, general director of the Spanish Confederation of Compound Animal Feed Manufacturers (CESFAC).

"There are currently several ships of U.S. corn in the Atlantic that were on their way and that were running a little short to make it in time for April 15," he told Reuters.

Spain is one of the main grain importing countries in Europe, with foreign supplies notably helping to feed its large pig herd.

The country has led large EU imports of U.S. corn in the current 2024/25 season, with buyers attracted by cheap, abundant U.S. supplies.

While feed makers can switch to other corn suppliers like Ukraine and Brazil, or use different cereals like wheat, this would have likely been less competitive than U.S. corn in the short term.

Despite the tariff reprieve, uncertainty over trade relations since U.S President Donald Trump's return to office underlined the need to diversify supply sources, De Saja said.

"It's time to start working in parallel on other alternatives and the best alternative we have is Argentina."

Spain obtained temporary approval for importing Argentine corn in 2022 when Russia's full-scale invasion of Ukraine disrupted Black Sea grain flows, but permanent access remains blocked by EU rules on pesticide residues, he added.

(Reporting by Emma Pinedo in Madrid, writing by Gus Trompiz; editing by David Evans)