U.S. Imposing Tariffs on Imported Products
FULL REPORT ON CHINA And the analysis of the tariffs imposed on U.S. pork by Mexico here: FULL REPORT ON MEXICO The other country that has targeted U.S. red meat for retaliatory tariffs is Canada. Its proposed retaliation list includes two HS Code lines for Chapter 16 Prepared Beef Products, from which Canada’s 2017 imports from the U.S. were valued at $164 million. UPDATE: In late August, USTR announced that the United States and Mexico reached an agreement in principle on key issues under discussion in the NAFTA renegotiations. A USTR fact sheet states that tariffs on agricultural products traded between the United States and Mexico will remain at zero. However, Mexico has not yet been exempted from the United States’ steel and aluminum tariffs and so Mexico’s retaliatory duties on U.S. pork remain in place. The Trump administration then notified Congress of its intent to sign an agreement with Mexico. Canada is not included in the agreement, but negotiations with Canada are ongoing. While USMEF is pleased with the progress in reaching an agreement with Mexico, removing the retaliatory duties on U.S. pork remains the most immediate concern for the U.S. meat industry. UPDATE: On Sept. 17, USTR released a list of approximately $200 billion worth of Chinese imports that will be subject to additional tariffs beginning Sept. 24. The initial tariff rate will be 10 percent but it is set to increase to 25 percent on Jan. 1, 2019. HS 0504 sausage casing imports from China were not included on the final list. In response, the Chinese government announced its retaliatory measures. Effective Sept. 24, China will impose additional tariffs on approximately $60 billion in imports from the United States, including an additional 10 percent tariff on pork stomachs and casings (HS0504). Other U.S. red meat products are included on the latest retaliation list, but they are items not currently eligible for export to China. Hog sausage casings and stomachs were the only significant red meat export items that had not yet been included on China’s retaliatory tariff lists. UPDATE: USMEF issued this statement in response to the White House announcement and the signing of the U.S.-Mexico-Canada Agreement, which took place Nov. 30, 2018. UPDATE: On Dec. 1, 2018, the White House announced that the U.S. and China will enter negotiations on several key trade issues, including agricultural trade, and established March 1, 2019 as the target date for resolving current trade disputes. Three rounds of talks have taken place in early 2019, but few details have been revealed. A U.S. delegation will travel to Beijing for the next round of talks the week of March 25, with another round to follow the week of April 1 in Washington, D.C. UPDATE: In a March 2019 guest column in National Hog Farmer Magazine, USMEF discusses the mounting costs retaliatory duties have imposed on the U.S. pork industry. Read the full article online. UPDATE: In early April 2019, news reports from Canada and Mexico suggested that both countries are preparing to make changes in the lists of U.S. products subject to retaliatory duties. There is some speculation that Mexico could add U.S. beef to its list and that Canada could possibly add pork, but no specifics are available at this time. UPDATE: The White House announced that a U.S. delegation will travel to Beijing for another round of trade talks beginning April 30, with an additional round scheduled to begin on May 8 in Washington, D.C. UPDATE: On May 17, 2019, USTR announced the removal of Section 232 tariffs on steel and aluminum imports from Mexico and Canada and elimination of those countries’ retaliatory tariffs on U.S. goods. On May 20, the Mexican government published the official notice removing Mexico’s retaliatory duties on U.S. pork and Canada’s Department of Finance announced that Canada had eliminated the 10% tariff Canada imposed on prepared beef items imported from the United States. USMEF President and CEO Dan Halstrom issued this statement: Restoring duty-free access to the Mexican and Canadian markets is a tremendous breakthrough for the U.S. red meat industry. USMEF thanks President Trump and Ambassador Robert Lighthizer for reaching an agreement with Mexico and Canada on steel and aluminum tariffs and in turn Mexico and Canada’s lifting of the retaliatory duties on U.S. red meat. This also removes a significant obstacle for the U.S.-Mexico-Canada Agreement (USMCA), and USMEF is hopeful that all three countries ratify USMCA as soon as possible. UPDATE: The news is not nearly as positive with regard to China. While U.S.-China talks appeared to be making progress through the first few months of 2019, negotiations have largely broken down and the tariff battle has heightened. On May 10, 2019, the U.S. raised the Section 301 tariff rate from 10% to 25% on $200 billion in Chinese goods and USTR announced that President Trump has also ordered the agency to begin the process of raising tariffs on “essentially all remaining imports from China.” A public hearing on this plan will be held June 17. In response, China’s Ministry of Finance announced additional tariffs on $60 billion of U.S. products effective June 1, 2019. Most U.S. pork and beef items, which are already subject to significant retaliatory duties (detailed below), are not affected by China’s latest action. However, the retaliatory duty on U.S. casings and stomachs increased from 10% (imposed in September 2018) to 25%. So the total duty rate for U.S. hog casings and stomachs entering China is now 45% (normal rate of 20% + additional 25%) and for sheep casings the rate is 43% (normal rate of 18% + additional 25%). For most U.S. pork entering China, the total duty rate remains at 62% (normal rate of 12% + 50% retaliatory duties) and for U.S. beef the total rate is 37% (normal rate of 12% + 25% retaliatory duty).