Paul Marchand, senior risk management analyst at HAMS Marketing Services, said Canadian hog producers face bigger risks from a Mexican tariff on U.S.pork than from U.S. tariffs on Canadian pork.
He reasons that a Mexican tariff on U.S. pork would back up a huge volume of pork in the U.S., driving its prices down. Because Canadian hog and pork prices track U.S. markets, Canadian farmers would be hit hard.
The export of weaner and market hogs to the U.S. could dry up.
On the other hand, one thing Marchand did not say is that Trump’s threat of new 25 per cent tariffs on Japan and South Korea would likely prompt them to prefer Canadian over U.S. pork. Japan has already recently increased purchases of Canadian pork.
