China Critically Important U.S. Pork Export Market

NPPC’s Position

NPPC wants China to permanently exclude U.S. pork from the application of retaliatory tariffs so that pork producers can fully capture the benefits of the U.S.-China “Phase One” trade deal.

Background

The United States and China in January 2020 signed a “Phase One” trade deal that holds tremendous promise for American hog farmers. But because a deal was not reached on Section 232 tariffs on foreign steel and aluminum, U.S. pork exports to China currently face a 33% tariff, including a 25% retaliatory duty based on remaining trade disputes between the two countries. Meanwhile, pork from competitor nations faces only an 8% percent tariff, placing U.S. pork at a significant competitive disadvantage. If China eliminates all tariffs on U.S. pork, annual sales to China could grow to nearly $25 billion within 10 years.

The U.S. trade dispute with China has cost U.S. pork producers $8 per hog, or $1 billion on an annualized basis. Pork, by far the most consumed protein in China, is a major element of the country’s consumer price index. China has experienced significant food price inflation as the world’s largest pork-consuming nation deals with African swine fever and a dramatic drop in domestic pork production. China’s demand for pork has never been greater, creating an unprecedented sales opportunity for U.S. hog farmers.

Fast Facts

$1 Billion

on an annualized basis, or $8 per hog, has been lost by U.S. pork producers because of China’s retaliatory tariff on pork.

$24.5 billion

in new pork exports could be shipped to China if the U.S. pork industry had unrestricted access to the Chinese market, and those exports would reduce the overall U.S. trade deficit with China by nearly 6% and generate 184,000 new U.S. jobs over a decade, according to Iowa State University economist Dermot Hayes.

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