KANSAS CITY, Mo. – China imposed a 25 percent tariff on $34 billion of US exports to China — including beef, pork, soybeans, corn, cheese and numerous other agricultural products — in response to a similar duty imposed by the US on Chinese exports that went into effect on July 6.
The duties on US beef follow an announcement by the Chinese government that it will lift a longstanding ban on imports of beef from France and Great Britain. France and China negotiated an export protocol which will allow French beef producers to export products once their plants are officially registered, the Foreign Agricultural Service (FAS) of the US Dept. of Agriculture said in a recent report. The UK will still need to negotiate an export protocol.
With this announcement, 16 countries are eligible to export beef and beef products to China, and France will be the fifth country eligible to export both fresh and frozen beef. FAS said other countries eligible to export fresh and frozen beef include the US, Canada, New Zealand and Australia. Countries eligible to export frozen beef are Argentina, Brazil, Costa Rica, Chile, Uruguay, Mexico, Ireland, Hungary, Belarus and South Africa.
FAS noted that US beef products could incur tariffs as high as 50 percent depending on the cut.
US Chamber President and CEO Thomas J. Donohue warned this week that tariffs are beginning to take a toll on US industries and consumers as China and other export markets such as Canada and Mexico impose tariffs on US-made goods.
“Tariffs are simply taxes that raise prices for everyone,” Donohue said. “Tariffs that beget tariffs that beget more tariffs only lead to a trade war that will cost American jobs and economic growth.”
In June, Canada announced higher tariffs on $16.6 billion worth of US products including $170 million worth of US beef products, according to the National Cattlemen’s Beef Association (NCBA). That tariff went into force on July 1.
“It is with regret that we take these countermeasures, but the US tariffs leave Canada no choice but to defend our industries, our workers and our communities, and we will remain firm in doing so,” Chrystia Freeland, Canadian Minister of Foreign Affairs, said at the time. “The real solution to this unfortunate and unprecedented dispute is for the United States to rescind its tariffs on our steel and aluminum.”
The NCBA called for collaboration between the US and Canada. Kent Bacus, director of International Trade and Market Access for the NCBA said “As Canadians gather to celebrate Canada Day and we prepare to celebrate American Independence, we encourage our government and the Canadian government to remember that we are allies and we rely on each other for future economic prosperity.”
Mexico also implemented retaliatory tariffs on imports of most US pork products in response to US tariffs on aluminum and steel. An analysis by the US Meat Export Federation (USMEF) estimated the US pork industry could lose more than $300 million for the remainder of 2018 and $600 million over the next 12 months on a decline in ham primal value.
“The administration is threatening to undermine the economic progress it worked so hard to achieve,” Donohue said. “We should seek free and fair trade, but this is just not the way to do it. It’s time to reverse course and adopt smarter, more effective approaches for addressing trade concerns with commercial partners.”