This involves the reinstatement of additional tariffs on American beef and pork, which were partially suspended after the signing of the so-called ‘first phase’ trade agreement in 2020. The exemptions served as a mechanism to mitigate the effects of the trade war that began in 2018.
According to the US Meat Export Federation (USMEF), the effective tariff rate on American pork will increase from 57% to 87%. This applies not only to the main meat cuts, but also to offal, a category that has been key to exports to China.
Although the full list of products to which the new tariffs will apply has not yet been released, American exporters are already warning of a loss of competitive advantage in the Chinese market. This is especially true in comparison to Brazil, Argentina and Australia, which have much more favourable trade agreements with Beijing.
‘We expect a significant decline in exports to China, which will affect the entire supply chain — from farmers to processors,’ the USMEF said.
China's decision is partly related to the new round of trade and diplomatic tensions that have recently escalated between the two economic giants. At the same time, it may also indicate Beijing's attempts to diversify its sources of food supplies, especially meat, amid growing domestic challenges in the area of food security.
According to official data, China was one of the largest consumers of American beef and pork, importing more than $2 billion worth of meat annually. From now on, this part of trade is under serious threat.
This move by China will potentially have broader implications for the global meat market, as suppliers from other countries can quickly fill the void left by the US in one of the world's largest consumer markets.
Experts expect that in the medium term, Brazil and Argentina will benefit the most, as their pork and beef are actively promoted in Asia and have customs advantages.
Meanwhile, the US, losing access to China, may try to redirect export flows to Mexico, South Korea, Japan or Southeast Asian countries, but this will require new agreements and adaptation of logistics chains.
PigUA.info based on materials from euromeatnews.com