Sino-US trade war will make the total tariff of US pork exports to China as high as 88%

By CnAgri2018-08-09 16:01:44 Print According to US Customs news, the United States imposed an additional 25% tariff on 818 categories in the first batch of lists and $34 billion in imports from China at 00:01, July 6, local time (at 12:01, July 6, 2018, Beijing time).  As a counterattack, China quickly retaliated by levying tariffs on the same amount, and the tariff increase measures for some products have been officially implemented at 12:01 on July 6, 2018, Beijing time.
 
The total tariff on US pork exports to China is as high as 88%. China imposed a 25% tariff on US pork products on April 4, levying a second round of tariffs on July 6 (At present, China has not imposed additional tariffs on other US products). According to industry experts, after deducting 10% VAT, the total tariff on US pork exports to China will be as high as 88% from July 6.
 
After the addition of high tariffs, the competitiveness of US pork will be greatly reduced, which will have a certain impact on US pork exporters. According to data from the American Meat Export Association, in 2017, the United States exported 309,300 tons of pork and pig products to China, valuing 663 million US dollars. From the perspective of export volume and export value, China’s the third and fourth largest international market of US pork and pig products respectively. After the high tariffs are imposed, the cost advantage of US pork will disappear, and the competitiveness will be greatly reduced. Compared with the pork products of European countries such as Germany and Spain, US pork is basically uncompetitive, which has a great impact on US pork export enterprises.
 
For domestic pig industry, at present, hog supply is sufficient and pig price is low, so the reduction of US pork imports will not affect pork supply in the domestic market, and it will likely slightly push up pig price which has been decreasing.