According to the US Meat Export Association (USMEF), as China imposes a 25% tariff, the US pork and pig chop that are exported to China now face a tax rate of 62%, while the tariffs of Chinese suppliers such as the EU, Brazil and Canada. Only 12% will make the US pork export situation in the second half of the year even more severe.
According to the "International Pig Industry" reporter, imported frozen meat is subject to an 11% VAT in the domestic circulation (13% before July 1, 2017).
According to data released by USMEF, due to the 25% tariff increase imposed on April 2, US pork exports to China/Hong Kong in China (the latter were not affected by tariff increases) fell sharply by 31% year-on-year to 34,191. Tons, exports also fell by 25% to $79.9 million. From January to May, exports and exports to China/Hong Kong fell by 18% and 6% to 187,439 tons and $436.4 million, respectively.
Overall, after hitting a new high in April, US pork exports in May fell 2% year-on-year to 217,209 tons, mainly due to a decrease in pig chop exports; in May exports fell 3.5% to $562.5 million. From January to May, US pork exports still rose 3% year-on-year to 1.08 million tons, and exports increased by 6% to 2.85 billion US dollars. In the first five months, US pork exports accounted for 27.5% of its total pork production, a slight decrease from the previous year.
Mexico has also imposed tariffs ranging from 10% to 20% on US pork products since June.
“Unfortunately, US pork has been involved in disputes unrelated to the pork trade,” said Dan Halstrom, president and CEO of USMEF. “USMEF is focusing on the factors we can control, working with US processors and exporters to make every effort. To maintain our market share and protect our operations in Mexico and China. USMEF has also emphasized the importance of diversified export markets, and we will expand US pork exports to emerging markets, and these efforts are more critical than ever. ."