US Cattle and Pork Producers Losers in China Trade War

While Trump administration officials have suggested a de-escalation of trade tensions between the United States and China could be coming soon. Neither side has adjusted. Recently heightened tariff rates, with China imposing retaliatory duties in response to the US reciprocal tariffs China's effective duty rate on us pork and pork variety meat has reached 172% while US beef and beef variety meat are tariffed at 147% these high duties have effectively halted trade. According to Erin Borrer, US Meat Export Federation, Vice President of economic analysis,

“There's a mad scramble to try to essentially find new homes for this product that is in the pipeline that was produced for China. And remember that for China, we have special China labeling. It's ractopamine-free product with a China label, both on the bag and the box. So it's costly production specific for China, and thus difficult to reroute or find a new home for this product.”

Bohr notes that China has unique product needs that other destinations cannot fully replace. She estimates that China being absent from the market, puts more than $150 per fed steer or heifer at risk, and the US pork industry stands to lose about eight to $10 per head and export value in large part because China is the leading destination for pork variety meat.