U.S., China Call Temporary Time-out on Tariff Trade Tussle

What happened: NPPC applauded the agreement between the United States and China to temporarily reduce tariffs on each other’s exports and begin negotiations on a new trade deal.

As of May 12, the countries agreed to cut duties by 115 percentage points for 90 days. The United States had a tariff of 145% on Chinese goods, while China had a tariff of 125% on U.S. products. The move does not include U.S. tariffs that were in place prior to April 2 such as one on steel and aluminum and a duty related to fentanyl ingredients coming from China.

U.S. pork exported to China will still face a minimum total tariff rate of 57%. Over the past few weeks, the duty on U.S. pork had reached 172% – making it impossible for U.S. pork producers to compete in the Chinese market – as China and the United States engaged in a tariff trade war.

NPPC’s take: “America’s pork producers are encouraged by the temporary tariff reduction agreement reached by the U.S. and China,” said NPPC President and Ohio pork producer Duane Stateler. “We look forward to the continued collaboration and engagement between both countries to further reduce tariff and non-tariff barriers to trade. No other country holds a candle to our export opportunities in China, as many of our exported pork products, such as offals, are not widely consumed in the U.S. and have nowhere to go.”

Why it matters: China was the No. 3 value market for U.S. pork in 2024, with the pork industry shipping more than $1.1 billion of product, or about 13% of its total exports, to the Asian nation. More than 65% of those shipments were variety meats, including pork feet and intestines, for which China pays a premium and other countries have little affinity. China’s recent high tariffs on pork were costing the U.S. pork industry about $8 to $10 per head, or $1 billion annually, in export value, according to the U.S. Meat Export Federation.

Pork Priorities Advance in House Ag Budget; NPPC Remains Committed to Prop. 12 Fix

What happened: The House Agriculture Committee passed on a 29-25 vote its package for budget reconciliation legislation – part of President Trump’s “one big, beautiful bill” – for fiscal 2026 and beyond.

NPPC priorities in the agriculture committee’s package fund:

• Programs related to preparing for and preventing foreign animal diseases (FADs), including funding for the National Animal Health Laboratory Network, the National Animal Disease Preparedness and Response Program, the National Veterinary Stockpile, and the National Animal Vaccine and Veterinary Countermeasures Bank.
• The Feral Swine Eradication and Control Pilot Program at $15 million a year for fiscal 2025 through fiscal 2031.
• The Market Access Program at $400 million a year for fiscal 2026 through 2031 and the Foreign Market Development program at $69 million a year for that same period. Both programs promote U.S. agricultural exports.

NPPC’s take: NPPC supports funding for programs that support farmers, including ones that improve preparation for and prevention of FADs, help promote U.S. exports, and control and eradicate feral swine. It continues to urge congressional lawmakers to include in any pertinent legislation a fix to the issues caused by California Prop. 12.

It’s critical that the agriculture committee “keeps its promise to take action on a solution to the many problems triggered by California Proposition 12,” said NPPC President and Ohio pork producer Duane Stateler in a statement on the panel’s reconciliation measure.

Why it matters: The budget reconciliation bill includes authorization and spending blueprints for various federal programs, including ones that help farmers.

100% of NPPC Asks Included in Ways and Means Tax Package

What happened: The House Ways and Means Committee also passed a tax package for its portion of the budget reconciliation legislation.

NPPC priorities in the package include:

• Making the Qualified Business Income Deduction permanent, allowing producers to make organizational decisions for their business not based solely on tax liability;
• Making Bonus Depreciation permanent at 100% to provide producers with flexibility to plan cash flows for major asset acquisitions;
• Changing the way the Business Interest Expense Limitation is calculated to avoid harming producers relying on borrowing to make improvements or normalize cash flow in poor market conditions;
• Making the Estate Tax Exemption increase permanent to prevent new tax exposure for family-owned farms; and
• Substantially increasing the expensing limitations of Section 179 to provide producers flexibility in planning cash flows around major asset acquisitions.

NPPC’s take: NPPC supports extending tax provisions beneficial to agricultural producers that were in Trump’s 2017 Tax Cuts and Jobs Act, set to expire at the end of the year.

Why it matters: All NPPC priorities were included in the package passed by the Ways and Means Committee. As the bill moves forward in the reconciliation process, Congress must continue to advocate for these beneficial provisions to remain in the bill.

NPPC: Exclude Animal Health Products from 232 Investigation

What happened: In comments submitted to the U.S. Department of Commerce, NPPC urged the agency to exclude animal health products from an investigation of imports of pharmaceuticals and their ingredients.

The Section 232 National Security Investigation is expected to look at, among other factors, the extent to which domestic production of pharmaceuticals and pharmaceutical ingredients can meet domestic demand, the role of foreign supply chains in meeting U.S. demand, and the feasibility of increasing domestic capacity to reduce import reliance. Importantly, the investigation will determine the impact of current U.S. trade policies on domestic production and imports and whether additional measures, including tariffs or quotas, are necessary to protect national security.

NPPC’s take: NPPC is concerned about actions resulting from the Section 232 investigation – such as the imposition of tariffs – that could negatively affect the costs and availability of animal health products. In its comments to the Commerce Department, NPPC noted that “tariffs on pharmaceutical products would increase already elevated production costs for [a pork] industry working hard to produce an affordable, safe, and nutritious protein for U.S. consumers and many others around the world.”

Why it matters: Animal health products are critical inputs for pork producers, who use them to diagnose, control, and treat diseases. Access to those products is essential for animal welfare, productivity, and livability, all of which affect producers’ bottom line.

Many pork producers have not recovered from losses incurred from late 2022 to early 2024 that resulted largely from record-high production costs, including high non-feed expenses. Those costs, which include labor, utilities, transportation, and veterinary services and supplies, now account for $46 per head, 27% of total estimated production costs for farrow-to-finish hog producers.

NPPC’s Zieba Meets with Mexico’s Agriculture Secretary

What happened: NPPC Vice President of Government Affairs Maria C. Zieba met with Mexico’s secretary of Agriculture and Rural Development, Julio Berdegué Sacristán, to discuss agricultural issues of mutual concern to their respective countries.

Held at the Embassy of Mexico in Washington, DC, the meeting also was attended by Dr. Javier Calderon, who leads Mexico’s National Service of Health, Safety and Agri-food Quality, as well as embassy staff.

Zieba discussed trade between the United States and Mexico, animal health issues, and other agricultural matters of importance to pork producers.

Why it matters: Mexico is the No. 1 export market for the U.S. pork industry, with shipments of product there in 2024 valued at nearly $2.6 billion. Worldwide, U.S. pork exports last year were almost $8.2 billion and equated to an average of more than $66 in value for each hog marketed. Those exports supported more than 150,000 U.S. jobs.