Monday, May 20, 2019

Canada lifts meat tariffs against the U.S.

Canada has lifted a long list of tariffs now that the United States has scrapped its 25 per cent tariff on steel and 10 per cent on aluminum.

Mexico has also lifted its tariffs, including 20 per cent on U.S. pork that helped depress hog prices in both the United States and Canada.

It remains to be seen whether hog prices will now rise. China still has tariffs on U.S. pork and that also pressures hog prices lower.

Canada applied a 10 per cent duty on U.S. cooked/prepared beef products. 

According to the U.S. Meat Export Federation, U.S. beef exports to Canada were down 14 per cent in both volume (23,199 metric tons) and value ($143.8 million) in the first quarter of 2019. 

David Herring, president of the National Pork Producers Council  in the United States said "Mexico's 20 per retaliatory tariff on U.S. pork has cost our producers $12 per animal, or $1.5 billion on an annualized, industry-wide basis.”