What does a pause for tariffs mean for the U.S. pork industry? After 25% tariffs were authorized by President Donald Trump in an executive order for Canada, Mexico and China on Feb. 1, discussions around retaliation ensued. Tariffs for Canada and Mexico are now on a 30-day hold after President Trump held conversations with his counterparts.
“President Trump has been very clear about what he’s going to do,” National Pork Producers Council (NPPC) CEO Bryan Humphreys said during the Ohio Pork Congress. “He has talked about tariffs on Canada, Mexico, and China for months now. He campaigned on tariffs. He has now shifted and started to talk about the European Union as well. None of this came as a surprise to the folks in NPPC or the folks in this industry. What remains a question is how those countries will push back or retaliate.”
A 25% tariffs on Canada impacts the U.S. because of the number of weaned pigs and live hogs that cross over from Canada into the U.S., Humphreys explains.
“There is an impact to our industry right out of the gate,” he says.
A new 10% tariff on products from China causes concern because amino acids, vitamins and a big chunk of minerals used in U.S. swine rations come from China, Humphreys says.
“For products that had not cleared customs by midnight Feb. 4, a 10% tariff was applied and that is incredibly problematic for us,” he says. “If you’re not aware and you are curious where most of the minerals and vitamins come from that you use on your farms, the Swine Health Information Center did a fascinating report that we use regularly from a public policy standpoint, talking about where those vitamins and minerals come from. As this discussion with China continues to move forward, we should be thinking about what that looks like long term and the potential impacts that can have on our industry.”
The pork industry has to be cognizant of potential retaliation by these three countries on U.S. pork products, Humphreys says. He hopes the 30-day hold from Canada and Mexico will allow everyone to take some time to navigate what their agreements have been and to put those in place and demonstrate progress.
With the U.S.-Mexico-Canada Agreement (USMCA) moving into its fifth year, it’s nearing time for a review. With between 25% to 30% of U.S. pork production being exported, over $8.6 billion in exports, with Mexico importing about a third of that, he says.
“Since 2018-19, the amount of product that we export to Mexico has grown substantially, and the cross-border traffic between the U.S. and Canada from a pork production standpoint has increased dramatically as well,” he says. “We need to make sure we continue to communicate with members of Congress and specifically the administration on the value of USMCA and what President Trump did for us. He negotiated this deal, and it has been incredibly valuable for us.”
NPPC urges all parties to come together to create stability in the marketplace.
Read More: What Are Ohio Pork Producers Doing to Defy the Winter Slump?
