China’s latest tariffs on US agricultural products are set to disrupt global trade, with the world’s top farm importer turning to South America, Europe, and the Pacific for meat, dairy, and grains. Industry analysts predict a surge in shipments from Brazil, Australia, and Europe as China seeks alternatives to US imports amid escalating trade tensions.
In response to fresh US tariffs, China announced import levies of 10% to 15% on $21 billion worth of American farm goods. This move is expected to significantly impact pork offal and chicken feet imports, with China increasing its reliance on Brazil, Spain, the Netherlands, and other European Union suppliers. The shift continues a trend of reducing dependence on US agriculture, a strategy initiated during former President Donald Trump’s first term.
Impact on US agri exports
The United States exported $29.25 billion worth of farm products to China in 2024. The new tariffs could open doors for competing exporters, further reducing China’s reliance on American agricultural products. Trump’s recent tariffs on Canada and Mexico also add pressure to the $191-billion US agricultural export industry.
China imported $16.26 billion worth of US beef, pork, and chicken in 2024, but new duties are expected to boost imports from Europe and South America. However, China’s continued demand for US chicken feet is likely, as alternatives remain scarce. Meanwhile, South American countries, particularly Brazil and Argentina, are expected to benefit from China’s reduced soybean imports from the US Australian sorghum and barley could also gain from China’s shift in grain purchases.
(With Reuters inputs)