China Imposes Retaliatory Tariffs on Beef and Pork

It was only a matter of time… before retaliatory tariffs imposed by China would hit U.S. beef and pork exports.

By the numbers: The duty rate on U.S. beef and variety meats is 147%, while pork is at 172%. 

What this really means: Losses to the tune of $4B annually for beef ($150 per fed steer or heifer) and $1B in annual losses for pork ($8-$10 per head in export value). China is very specific in the products it imports, which also contributes to these sky-high numbers.

Rerouting: As China’s tariffs have made it virtually impossible to sell there, there is a colossal effort to find new markets for the products.

Soundbite: “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.” — Erin Borror, U.S. Meat Export Federation

And this: China failed to renew registrations for 400 U.S. beef facilities, rendering the majority of U.S. beef production ineligible for export to China without taking tariffs into account. In March, most U.S. pork facility registrations were renewed; however, China did not renew nine registrations that expired on April 20.