Looks like it won't be too soon for the US-China trade war to cease as Beijing hits back on Washington with its latest tariff rate, this time placing the humble pig in the line of fire.
As a response to Trump's tariffs on heavy equipment, tech goods, and other consumer products coming from China, the Asian powerhouse is making its retaliatory move, placing new heavy tax rates on American food products, more particularly pork.
According to recent reports, Beijing is now targeting the US pork industry as it introduces yet another 25 percent tariff rate this July, in addition to the initial 25 percent duty placed in April.
China rather has a huge appetite for pork that prior to the ongoing US-China trade spat, the country is accounted for the majority of the US pork export. A Reuters report said that almost all of the excess pig parts produced in the US were being shipped to Hong Kong and the mainland.
These parts include those that are deemed unpalatable to the American palette such as feet, heads, entrails, hearts, and tongues.
Erin Borror of US Meat Export Federation admitted that the high price placed on these "surplus" parts, which is collectively known as offal, really helps the pork industry stay afloat all these years. In 2017 alone, the US had reportedly exported almost half a million metric tons of pork and other pork variety, valuing $1.08 billion.
This profitable situation may soon be changed as the Xi Jinping administration is bent on imposing tariffs on US-imported food products.
USMEF's chief Dan Halstrom told Pork Business that "this decision will have an immediate impact on U.S. producer and exporters." The effect could even be felt by the Chinese consumers.
Although reliant on imported pork, China has its own thriving pig industry. However, the high demand for this product pushes the country to tap on other sources, mainly the US.
"We are hopeful that the additional duties can be rescinded quickly, so that U.S. pork can again compete on a level playing field with pork from other exporting countries," Halstrom went on to say.
Economic experts believe the tax retaliation could very well be considered a direct political attack on Trump.
Chris Hurt of Purdue University's School of Economics pointed out that the new tax particularly hurt the pork industries based in states that happen to be strong supporters of the US president.
