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Ranch It Up Herd It Here Weekly Report - U.S. - China Tariff War Cripples Agriculture Exports As Industry Faces Major Setbacks

U.S.-China Tariff War Cripples Agricultural Exports as Industry Faces Major Setbacks

Triple-Digit Tariffs Disrupt U.S. Beef, Poultry, and Pork Exports to China and Hong Kong

Triple-digit tariff rates on goods traded between the United States and China have “effectively closed that market for U.S. exports,” according to a source quoted by Politico from the agriculture industry.

Despite the sharp decline in imports, China still purchased $25 billion worth of U.S. food and agricultural products last year. “Making up for that around the world is going to be very challenging,” the source emphasized.

The Trump administration recently imposed new tariffs of up to 145% on Chinese goods, compounding already substantial levies. In response, China retaliated with tariffs reaching 125% on U.S. exports.

Since early March, U.S. beef exports to China have come to a near standstill following Beijing’s declaration that U.S. export licenses were no longer valid. Even before the full retaliation in early April, U.S. chicken exports to China dropped by 48% in February compared to the same month last year.

In 2024, China and Hong Kong together accounted for $525 million in U.S. poultry meat and products (excluding eggs), ranking as the third-largest export market behind Mexico and Canada. Beef exports reached nearly $2 billion, just behind South Korea, while pork exports to the region surpassed $1.1 billion, trailing only Mexico and Japan.

REFERENCE: https://www.meatingplace.com/Industry/News/Details/118821

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