Source: Chris Scott, MEATINGPLACE, 4/4/18


China’s Ministry of Commerce today released a list of 106 additional U.S.-made products subject to tariffs of 25 percent in retaliation for the Trump administration’s proposed duties, and the new list includes U.S. beef and soybeans.

No start date for imposing these tariffs has been announced – even as trade negotiators are expected to begin talks at some point. 
China’s list now includes:

• Whole and half-head fresh and cold beef
• Fresh and cold beef with bones
• Fresh and cold boneless beef
• Frozen beef with bones
• Frozen boneless beef
• Frozen boneless meat
• Other frozen beef chops 
• Yellow and black soybeans

Industry responds
U.S. Meat Export Federation (USMEF) Chief Executive Dan Halstrom said Chinese interest in U.S. beef has steadily gained momentum and the U.S. customer base has grown in the nine months since the reopening of the Chinese market.

“But if an additional import tariff is imposed on U.S. beef, these constructive business relationships, and opportunities for further growth, will be put at risk. USMEF is hopeful that this trade dispute can be resolved without China introducing additional obstacles for U.S. beef,” Halstrom said.

In the second half of 2017, following the market reopening, U.S. beef exports to China totaled 3,020 metric tons valued at $31 million, according to USMEF. In January 2018, exports reached the highest monthly volume to date at 819 metric tons, valued at $7.5 million.

“China is a promising market for U.S. beef, and, since the June 2017 reopening, the U.S. industry has made an exceptional effort to provide customers with high-quality beef at an affordable price. This is not an easy task, due to our 13-year absence from the market and China’s beef import requirements,” Halstrom said.

Kent Bacus, director of international trade and market access for the National Cattlemen’s Beef Association, said:

“It is unsettling to see American-produced beef listed as a target for retaliation. Sadly, we are not surprised, as this is an inevitable outcome of any trade war. This is a battle between two governments, and the unfortunate casualties will be America’s cattlemen and women and our consumers in China. The Trump Administration has until the end of May to resolve this issue. We believe in trade enforcement, but endless retaliation is not a good path forward for either side.”

Pork
Earlier this week, the Chinese government included U.S. pork on a list of 128 products that would be subject to a 25 percent tariff, effective immediately. The announcement prompted a brief sell-off of certain U.S. stocks, including Tyson Foods Inc., but today’s list has yet to produce similar concerns among investors holding shares of major U.S. beef processors in midday trading.

Meanwhile, pork processor Prestage Foods of Iowa – which is building a $300 million pork plant in Wright County – said China remains part of its export strategy. Prestage Chief Operating Officer Jere Null, told the Messenger News that the company is concerned about the tariffs, but “we understand the need for reform in the trade with China.” Null sees the long-term outlook as strong because of rising per-capita income in China, which will make beef and pork proteins more appealing to Chinese consumers. “We just need to get past this current road block,” he said.

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