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National Pork Producers Urges End to Trade War

Published: Friday, June 8, 2018

Following Thursday's move by the Trump administration to implement tariffs on steel and aluminum imports from Mexico (and Canada and the European Union) and the subsequent Mexican tariff retaliation on a host of U.S. goods, including pork, National Pork Producers Council warned about the economic consequences and called for an end to the trade disputes, including the one with China.

In retaliation for U.S. tariffs put on its steel and aluminum, China on April 2 imposed an additional 25 percent tariff on U.S. pork, as well as duties on 127 other American goods. NPPC, in a statement issued last Thursday (and one issued last Tuesday on China), pointed out that global export market uncertainty has resulted in considerable lost value for U.S. pork producers.

According to Iowa State University economist Dermot Hayes, hog futures have dropped by $18 per animal, amounting to a $2.2 billion loss on an annualized basis, since March 1 when speculation began about U.S. pork access to the Chinese market. The market disruptions, said NPPC, come at a time when U.S. pork is expanding production to record levels.

Last year, the U.S. pork industry shipped more than half of its $6.5 billion in exports to Canada ($792 million), China ($1.1 billion) and Mexico ($1.5 billion).

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