China is the world’s biggest consumer of pork, and a large volume of its protein needs are met via imports.
US meat processors like Smithfield Foods consider China ‘unlucrative’ should the import duty for pork goes up to 172%, and they might need to look for alternative markets. In 2024, the US exported US$1.1 billion of pork products to China. In the case of Smithfield, China is not its only market as it supplies to more than 30 countries, while exports contributed just 13% of its total sales in 2024.
Earlier in April, China raised its import tariffs on US pork to 172% in reciprocal action to Trump tariffs. Smithfield had been supplying a variety of meat to China and this includes pig organs like stomachs, hearts and heads that US consumers generally do not eat.
Nevertheless, the latest announcement in May has led to both countries reaching a 90-day ‘ceasefire’ on the tariffs war with China agreeing to lower the tariff rate for pork to 57%, making meat exports to China still a viable business for US companies.
As to what the future holds after the 90-day pause period, no one in the industry knows but it is obvious that a triple digit tariffs will do more harm than good for both US and China economies, and both countries will possibly reach a compromise on tariff rates.
