Farms.com Home   Ag Industry News

Chinese tariffs on U.S. pork jump to over 60 percent

Chinese tariffs on U.S. pork jump to over 60 percent

Retaliatory duties could put some American hog producers out of business

By Kate Ayers
Staff Writer
Farms.com

China hit American pork products with a second round of tariffs, sending the total tax value soaring to 62 percent.

On Friday, China announced a new 25 percent tariff on U.S. pork, a National Pork Producers Council (NPPC) release said.

This punitive tax is added to a 25 percent levy that China put in place early April. The roots of the trade war between the two countries are linked to “China’s theft of U.S. intellectual property and its forced technology transfers,” Dave Warner, NPPC’s director of communications, said to Farms.com today.

And China already had a 12 per cent tariff on U.S. pork.

China represents an important market for American pork producers, as the country accounted for 17 per cent of the total value of U.S. exports last year.

As of Friday, American producers also face a 10 percent tariff increase from Mexico, raising that country’s total tax to 20 per cent. 

“Both of those markets are very important to U.S. pork producers,” Warner said.

“Mexico is the U.S. pork industry’s number two export market, taking $1.5 billion (worth) of U.S. pork in 2017, and China is the number three export market, importing $1.1 billion last year.”

Economists from Iowa State University calculated that, from March through to May, producers lost $18 per hog or more than $2 billion on an annualized basis, the release said.    

“The Trump administration has said it will help farmers hurt by the ongoing trade disputes, but it remains to be seen the form that will take,” Warner said.

“One possible action, which has been used by USDA in the past, is a supplemental purchase of pork for federal food programs, such as for the military, federal prisons and the needy.”

The American government has also helped pork producers by opening new markets in Argentina and Paraguay. “They aren’t huge markets, but every little bit helps, and Argentina … has great growth potential,” Warner added.

NPPC continues to urge the administration to end the trade disputes as soon as possible and to do whatever it can to help America’s farmers. The organization also advocates for the maintenance and expansion of existing export markets, and the opening of new ones.

Previous Farms.com coverage on retaliatory tariffs can be found here.

RGtimeline/iStock/Getty Images Plus photo


Trending Video

Better Farming Ontario - Proudly Serving the World's Best Farmers for Over 25 Years

Video: Better Farming Ontario - Proudly Serving the World's Best Farmers for Over 25 Years


For over 25 years, Ontario Federation of Agriculture members have trusted Better Farming as a source for information to help them farm profitably, with insights and best practices for cash cropping, soil health, pest and weed control, livestock, and farm business management.

Watch this video to learn more about Better Farming and its relationship with producers across Ontario.

Message from Better Farming:

To our OFA farming readers, thank you for your time and your trust, for 25 years now. We look forward to continuing the journey with you.