China’s recent 25 per cent tariff on U.S. pork could cost U.S. hog producers between $6 and $8 per head, according to Rabobank analysts.
The situation would be similar for Canadians, but without any promises of help from the federal or provincial governments.
U.S. President Donald Trump has promised farmers he will compensate them for any losses related to China’s tariffs, imposed in retaliation to Trump’s tariffs, first on steel and aluminum, then a threat of tariffs on $50 billion worth of imports from China.
African swine fever in Europe is another challenge for the global pork industry that Rabobank has commented on.
China bought 12 percent of all U.S. pork and pork variety meat exports in 2017.
Rabobank said it’s uncertain whether China will crack down on U.S. pork variety meats shipped via Hong Kong.
That market alone could knock $2 to $3 per hog off of U.S. prices, Rabobank says.
