The seesaw effect of the trade war with China is bouncing back again. China and the United States are poised to resume trade talks in October. China has been working to show some good faith by buying more Ag products. On Friday there were also reports of the Chinese repealing the punitive tariffs on U.S. pork products.
Maria Zieba is the Director of International Affairs for the National Pork Producers Council (NPPC). She says NPPC is still looking into what the concrete details of this announcement are. Zieba says whatever it means, it seems we are moving in a positive direction.
The tariff rate on U.S. pork is 72% in total. This includes the standard 12% many countries pay, as well as an additional 60% in retaliatory tariffs. Iowa State’s Dermot Hayes has crunched the numbers on the effects this has had on pork producers.
Some may feel this offer is just more of the same things we have seen in the past. China and the U.S. make accommodations in good faith, then things unravel later. Zieba says when you are negotiating between the two economic powers in the world, it isn’t easy. She feels this news is worth being optimistic about.
With China’s hog herd decimated by African Swine Fever, the need to find a solution to be able to bring U.S. pork into China would be a great help for our producers and their consumers.