US meat industry faces uncertainty as retaliatory tariffs take effect
USA – The US Meat Export Federation (USMEF) has expressed disappointment over the failure to reach agreements that could have delayed or prevented tariffs imposed by Canada, China, and Mexico.
Dan Halstrom, president and CEO of USMEF, noted that these three countries accounted for US$8.4 billion in US red meat exports in 2023, with nearly US$4 billion coming from Mexico.
The United States began implementing the tariffs on March 4, with President Donald Trump announcing a 25% tax on goods from Canada and Mexico and an additional 10% tariff on Chinese imports.
The White House justified the tariffs as a means to pressure Canada, Mexico, and China into taking stronger action against illegal immigration and the inflow of fentanyl and other drugs into the US.
China quickly retaliated by placing a 15% tariff on US wheat, corn, cotton, and chicken, along with a 10% tax on soybeans, sorghum, pork, beef, and other agricultural products.
These new duties affect billions of dollars’ worth of US exports.
Canada responded by confirming it would move forward with its previously announced tariffs.
Initially, it will impose duties on US$30 billion worth of American products, with an additional US$125 billion in tariffs set to follow in three weeks.
Mexican President Claudia Sheinbaum also announced on March 4 that her government would introduce its own tariffs on US goods.
However, the specific details of Mexico’s measures have yet to be disclosed.
USMEF pointed out that in 2024, beef exports contributed more than US$415 per fed steer or heifer slaughtered, while pork exports generated over US$66 per animal.
The organization emphasized that these exports include lesser-used cuts and variety meats, which help maximize livestock value and provide US consumers with preferred cuts.
Economists warn that the agricultural sector in all four countries is likely to suffer from an escalating trade war, with US farmers among the hardest hit.
Mexico is a key buyer of US agricultural goods, accounting for nearly half of US corn exports in the 2023-24 marketing year.
It imported 23.4 million tonnes of corn valued at approximately US$5 billion and led in US wheat imports, purchasing US$937 million worth of the grain.
China, despite reducing its reliance on US agricultural imports, bought US$29.25 billion worth of American farm products in 2024, marking a 14% decline from the previous year.
This followed a 20% drop in 2023 as China continued to boost domestic production to reduce import dependence.
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