The latest US Meat Exporters Federation (USMEF) report on exports to the end of April shows a sharp reduction in volumes of beef and pigmeat exported for the month.
Beef exports were down 10% compared with April last year to 100,659 tonnes (t), while pigmeat volumes fell by 15% to 237,250t.
The fall in beef exports to China in April was both dramatic and expected. The volume fell by 68% compared with April last year to just 5,326t.
USMEF president and CEO Dan Halstrom said that “we expected beef shipments to China to hit a wall in April, due to the one-two punch of higher tariffs and expired plant registrations”.
Import licences
On plant registrations, he is referring to China not renewing the import licenses which had expired in March for many US beef exporting companies. This means that irrespective of the tariff situation, most US beef exporters weren’t eligible to export to China anyway.
Tariffs were the other part of the double whammy for US exporters to China in April. It was during the month that President Trump introduced a range of tariffs on countries from which the US imported.
China retaliated and, in a tit-for-tat exchange, tariffs were increased to 147% before being reduced to 32% in the middle of May in a de-escalation of the US-China trade war.
The fact that the US was able to export as much beef and pork to China as it did in April is probably due to the fact that product exported before 10 April and arriving in China by 13 May was exempt from the additional 125% added in retaliatory tariffs.
Markets switch
As well as total volume of exports falling in April, the difficulty in China meant switching of markets.
South Korea recorded an increase of 18% compared with April last year to 23,460t, with year-to-date volumes up 3% to 81,638t.
Japan was the second-largest volume market for US beef exports in April, taking 22,375t, an increase of 6% on April 2024. Mexico was third, despite a 16% decline compared with April last year, taking 17,676t.
Pigmeat exports
As was the case with beef, pork exports to China also slumped in April, down 35% to 26,365t.
This was - by and large - caused by the tariff situation and, unlike with beef exporters, export licenses for pork exporters are in the process of being renewed, enabling continuation of trade where tariffs make it commercially viable.
Mexico is the largest market for US pork exports and took 91,441t in April, which is 15% lower than the record volume recorded for April 2024.
Japan continued as the third-largest export market for US pork, taking 30,015t, which was 13% lower compared with April last year and the decline was broadly in proportion with the overall drop in export volumes in April.
South Korea was the fourth-largest export market in April, taking 23,954t.
Comment – China in the balance
The USMEF in its monthly update expressed hope that the issues between the US and China would be resolved soon and committed to a market diversification strategy to find alternative markets.
While the trade row with China was the only major problem in April export data, other trade issues, particularly with Canada and Mexico, remain bubbling below the surface.
While problems with them haven’t escalated to the same extent as they did with China, they have the potential to do so and cause further disruption. The 'no winners in trade wars' phrase is well worn, but it is very true.
The latest US Meat Exporters Federation (USMEF) report on exports to the end of April shows a sharp reduction in volumes of beef and pigmeat exported for the month.
Beef exports were down 10% compared with April last year to 100,659 tonnes (t), while pigmeat volumes fell by 15% to 237,250t.
The fall in beef exports to China in April was both dramatic and expected. The volume fell by 68% compared with April last year to just 5,326t.
USMEF president and CEO Dan Halstrom said that “we expected beef shipments to China to hit a wall in April, due to the one-two punch of higher tariffs and expired plant registrations”.
Import licences
On plant registrations, he is referring to China not renewing the import licenses which had expired in March for many US beef exporting companies. This means that irrespective of the tariff situation, most US beef exporters weren’t eligible to export to China anyway.
Tariffs were the other part of the double whammy for US exporters to China in April. It was during the month that President Trump introduced a range of tariffs on countries from which the US imported.
China retaliated and, in a tit-for-tat exchange, tariffs were increased to 147% before being reduced to 32% in the middle of May in a de-escalation of the US-China trade war.
The fact that the US was able to export as much beef and pork to China as it did in April is probably due to the fact that product exported before 10 April and arriving in China by 13 May was exempt from the additional 125% added in retaliatory tariffs.
Markets switch
As well as total volume of exports falling in April, the difficulty in China meant switching of markets.
South Korea recorded an increase of 18% compared with April last year to 23,460t, with year-to-date volumes up 3% to 81,638t.
Japan was the second-largest volume market for US beef exports in April, taking 22,375t, an increase of 6% on April 2024. Mexico was third, despite a 16% decline compared with April last year, taking 17,676t.
Pigmeat exports
As was the case with beef, pork exports to China also slumped in April, down 35% to 26,365t.
This was - by and large - caused by the tariff situation and, unlike with beef exporters, export licenses for pork exporters are in the process of being renewed, enabling continuation of trade where tariffs make it commercially viable.
Mexico is the largest market for US pork exports and took 91,441t in April, which is 15% lower than the record volume recorded for April 2024.
Japan continued as the third-largest export market for US pork, taking 30,015t, which was 13% lower compared with April last year and the decline was broadly in proportion with the overall drop in export volumes in April.
South Korea was the fourth-largest export market in April, taking 23,954t.
Comment – China in the balance
The USMEF in its monthly update expressed hope that the issues between the US and China would be resolved soon and committed to a market diversification strategy to find alternative markets.
While the trade row with China was the only major problem in April export data, other trade issues, particularly with Canada and Mexico, remain bubbling below the surface.
While problems with them haven’t escalated to the same extent as they did with China, they have the potential to do so and cause further disruption. The 'no winners in trade wars' phrase is well worn, but it is very true.
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