CHINA

China ends exemptions for US meat imports

US meats will lose key tariff benefits in one of their main export destinations. The measure will chill bilateral trade.

Posted on Aug 04 ,00:20

China ends exemptions for US meat imports

China announced it will lift tariff exemptions that allowed the entry of U.S. beef with tax benefits, a decision that could significantly affect bilateral meat trade and add pressure to the already complex economic relationship between the two countries.

The measure means that several US meat products—especially beef and pork—will once again be subject to the additional tariffs that China imposed during the trade war that began in 2018, and which had been partially suspended in 2020 following the "phase one" agreement between Washington and Beijing.

According to the U.S. Meat Export Federation (USMEF), the effective tariff on U.S. pork will increase from 57% to 87%. This increase will apply to both pork cuts and variety meats, a major export segment to China.

Although not all the cuts and products covered have yet been detailed, U.S. exporters are already warning that the sector's competitiveness will be compromised compared to suppliers such as Brazil, Argentine, and Australia, which have more favorable agreements with the Asian giant.

The lifting of the exemptions could be related to a new round of trade and diplomatic tensions between the two countries,  as well as China's interest in diversifying its food supply mix amid growing concerns about food security.

According to official data, China has been one of the main destinations for US pork and beef in recent years, with shipments totaling more than $2 billion annually.

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