Food & Climate
The U.S. and Canadian meat industries are at the heart of the Donald Trump’s tariffs battle, and they look set to be the ones most affected by it.
While the U.S. relies heavily on pork exports to Canada, and Mexico also, Washington is the largest market for buffalo meat from Ontario.
Although the U.S. has postponed the implementation of tariffs on Canadian beef imports until April, the specter of a trade war still haunts the U.S. and Canadian meat industries.
Canada’s suspension of pork imports from one of the largest U.S. companies may be the first stages of a long trade war that was sparked by U.S. President Donald Trump, according to a report seen by “Food & Climate” platform.
Canada has blocked imports from the biggest U.S. pork processing plant, a facility run by Smithfield Foods in Tar Heel, North Carolina, the company said on Friday, according to “CNBC”.
The suspension comes as Washington and Ottawa have engaged in a heated dispute over trade tariffs.
Canadian animals
With harsh winters and short growing seasons, Canada must rely on the U.S. for many of its fresh fruits and vegetables. At the same time, its farmers and fishers raise and catch more animals than 41 million Canadians need, so they sell to American consumers, who also represent a market that’s more than eight times larger, according to “Bloomberg”.
So, beef industry groups say with 25% U.S. tariffs on Canadian goods taking effect, they’re looking to diversify their export markets, process more domestically and push for improvements to government support programs, according to “Glob News”.
The cattle sector is tightly interwoven between Canada and the United States, with animals often raised here before being sent across the border for slaughter. The levy is the latest challenge for an industry already dealing with drought, an aging workforce and other long-term headwinds.
One fifth of harvest-ready cattle in Alberta are exported to the United States, making up a big percentage of the Pacific Northwest market, said Curtis Vander Heyden, vice-chair of the Alberta Cattle Feeders’ Association.
“In a week, you’re (taking) $10 to $12 million directly out of the pockets of a feedlot producer in Alberta,” Vander Heyden said of the tariffs.
Dennis Laycraft, executive vice-president of the Canadian Cattle Association, said he’d like to see Canada step up its international marketing efforts for Canadian beef.
“World beef demand is growing faster than world beef production. We’re pretty excited about the future, which is why it’s so frustrating to go through an event like this,” he said.
Laycraft said members of his group are currently in Asia, looking to develop relationships in growing markets like Japan, South Korea, Vietnam and Taiwan.
“You don’t replace the United States — it’s the largest market in the world — but we are looking at where we can diversify.”
Tariff on U.S. Pork
Canada has implemented a 25% tariff on imported U.S. pork and poultry products, with plans to extend similar measures to beef imports in the coming weeks.
Canadian officials argue that these tariffs are necessary to protect the country’s agricultural sector from unfair trade policies that disrupt a long-standing and mutually beneficial trade relationship.
The impact on U.S. pork exports could be substantial, as Canada remains one of the largest buyers of American pork. With these tariffs in place, Canadian processors and retailers may turn to alternative suppliers, potentially benefiting domestic producers and other international competitors.
Mexico is also expected to impose retaliatory tariffs on U.S. meat products, with an announcement anticipated in the coming days.
Mexico is the single largest buyer of U.S. pork, accounting for nearly 40% of total exports. Any additional trade barriers could significantly disrupt supply chains and force American producers to seek alternative markets.
Adding to concerns, Mexico has recently removed all tariffs on pork imports from other global suppliers, including Brazil. This move opens the door for increased competition, making it easier for non-U.S. producers to gain a foothold in a market traditionally dominated by American pork exports.
The combined impact of these retaliatory measures could lead to higher costs for U.S. pork producers, reduced export volumes, and increased price pressures within the domestic market. The U.S. pork industry has long relied on Canada and Mexico as key trade partners, and these new tariffs threaten to disrupt established supply chains.
Industry leaders have voiced concern about the long-term consequences of escalating trade disputes, warning that retaliatory tariffs could lead to job losses, reduced profitability, and a loss of market share to global competitors. With both Canada and Mexico standing firm on their positions, the situation remains fluid, and industry stakeholders will be closely monitoring developments in the coming weeks.
For producers and exporters, the priority now will be adapting to the shifting trade landscape while seeking alternative strategies to mitigate the impact of these tariffs. The coming months will be crucial in determining whether negotiations can ease tensions or if the North American pork industry will need to brace for prolonged trade disruptions, according to “Swineweb“.