Pork producers bracing for additional tariffs from China, Mexico this week
A report from CNBC details the concerns that many in the pork industry are feeling, as a second round of retaliatory tariffs is scheduled to impact the pork industry this week, along with other agricultural sectors. Mexico, which has already imposed a 10 percent tariff on chilled and frozen pork muscle cuts, is to double that tax to 20 percent. Those tariffs are in retaliation to a tax that the Trump Administration has imposed on aluminum and steel imports.
China is to add an additional 25 percent tariff on American pork products, bringing its taxes on pork products to 71 percent, reports Rabobank, plus an additional 10 percent value-added tax on agricultural imports. In addition to the aluminum and steel tariffs, the United States has imposed additional measures against China for alleged intellectual property theft.
Ken Maschoff, chairman of Maschoff Family Foods, told MSNBC how the trade disputes are impacting the pork producer’s business.
"We put a halt on all investment, not just because we will be losing money, but because we don't know if growing in the U.S. is the right move if we won't be an exporting country," he said.
Maschhoff said the farm industry has been "asked to be good patriots. We have been. But I don't want to be the patriot who dies at the end of the war. If we go out of business, it's tough to look at my kids and the 550 farm families that look us into the eye and our 1,400 employees."
Read the rest of the report here.