Source: Tom Johnston, MEATINGPLACE, 5/13/19


President Donald Trump is working to set up another federal aid package to relieve farmers as China has imposed $60 billion in tariffs on U.S. products in retaliation to his administration’s latest round of tariffs, according to multiple media reports.

China’s move followed the Trump administration’s decision last week to raise the rate on more than $200 billion worth of Chinese goods to 25% from 10% and to impose a 25% duty on another $325 billion in Chinese products. The president had threatened the increased tariffs a week earlier because U.S.-China trade talks, he said, were progressing too slowly.

When following through on that threat, Trump said proceeds from the new tariffs would be used to buy products from U.S. farmers and ship them to countries in need of the commodities over the next 18 months. USDA, according to Agriculture Secretary Sonny Perdue, is working on a plan to put into action, saying in a tweet that the president “loves his farmers and will not let them down!”

Last August, USDA made available $12 billion for farmers and ranchers impacted by retaliation to the Trump administration’s tariffs on Chinese, Mexican and Canadian steel and aluminum. By March, nearly $8 billion of that had been doled out.

Among the agricultural sectors hardest hit by the trade war has been the U.S. pork industry. Mexico’s 20% punitive tariff alone results in a loss of $12 per pig. China’s retaliatory 62% duty has taken a toll, too. Pork exports to China/Hong Kong in 2018 fell 29% in volume to 351,774 metric tons and 21% in value to $851.7 million. Through March of this year, U.S. exports to the China/Hong Kong region were 20% below last year’s pace in volume (89,689 mt) and down 34% in value ($172.1 million), according to the U.S. Meat Export Federation.

The National Pork Producers Council said it welcomed the Trump administration’s new offer of farmer assistance, but made clear the negative impacts that the trade war has had on pork producers.

“U.S. pork has suffered from a disproportionate share of retaliation due to trade disputes with Mexico and China. This retaliation turned last year — which analysts had forecast to be profitable — into a very unprofitable time for U.S. pork producers,” NPPC President David Herring said in a statement.

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