Possible Chinese retaliatory duties on US pork

March 29, 2018 – The US Meat Export Federation (USMEF) President and CEO, Dan Halstrom, cited an announcement by the Chinese government that it is placing pork on a list of US products that could be subject to increased import duties is cause for great concern in the pork industry.

pigs

Iowa is reportedly the leading pork producing state and this proposed duty hike would hurt pork producers in Iowa and other Heartland states.

USMEF is seeking further details on this announcement and on the likely timing of any action by the Chinese government.

China is a key market for US pork and especially for pork variety meat. In 2017, the US industry exported 309,284 metric tons (mt) of pork and pork variety meat to China, valued at $663.1 million – our third-largest international market by volume and fourth-largest by value. For variety meat exports only, China was our largest destination in both volume (181,351 mt) and value ($425.2 million). In fact, China accounted for more than one third of US pork variety meat exports last year.

Variety meat exports make a very important contribution to hog carcass value, and last year these exports to China alone equated to more than $3.50 per US hog slaughtered. China is a price-sensitive market, so any tariff rate increase would affect the competitive position of Heartland pork.

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