Impasse with China Weighs Heavily on May Exports of American Beef
Exports of American beef and pork trended lower in May, due primarily to steep declines in shipments to China, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
In April and the first half of May, China’s total tariff rate for American beef was 147%. Even following a May 14 joint announcement temporarily easing tariffs for 90 days, China’s rates still stand at 32% for American beef.
Beef exports totaled 97,266 mt in May, down 12% and the lowest in nearly five years. Export value was $798.7 million, down 11.5% and the lowest in 18 months. January-May beef exports were down 5% from last year’s pace at 508,293 mt, while value declined 3% to $4.15 billion.
“The situation with China obviously had a severe impact on May exports, underscoring the importance of diversification and further development of alternative markets,” said USMEF President and CEO Dan Halstrom. “The need for progress in the U.S.-China trade negotiations is extremely urgent because tariffs could soar again on Aug. 12. This deadline is already impacting exporters’ decisions about whether to continue producing for the Chinese market. On the bright side, amid all this uncertainty, demand for U.S. red meat remains robust in many key regions.”
Source: USMEF