BEIJING/CHICAGO (Reuters) - U.S. producers of pork, already saddled with duties enacted in an earlier round of the escalating trade dispute with China, are bracing for further pain after Beijing hit the products with additional tariffs due to come into effect next month.
China implemented a 25 percent duty on most U.S. pork items on April 2, and a 15 percent tariff on a range of fruits and nuts, in response to U.S. tariffs on Chinese steel and aluminum products.
Last week it included both categories in a second round of tariffs to be imposed on July 6. No other products have been listed twice.
Pork now faces cumulative import duties of 71 percent, not including value added tax, according to a formula published on the website of China’s finance ministry last week. Cumulative duties on fruit amount to 50 percent.
“The additional tariff will put us out of business,” said Zhong Zheng, founder of China-based Heartland Brothers, which sells U.S.-produced Berkshire pork to Chinese supermarkets and restaurants.
The United States shipped $489 million worth of pork to China last year, and had the biggest share of import volumes in the first quarter of 2018, at about 117,000 tonnes, according to Chinese customs.
But shipments have since ground to a near halt following the 25 percent tariffs implemented in April, said U.S. meat analyst Brett Stuart, president of Global AgriTrends.
“They’ve pretty much stopped our pork,” he said.
Total duties on U.S. pork will reach 88 percent from next month, after factoring in the 10 percent value added tax, according to one industry expert’s calculation.
