The US today imposed the announced 25% tariff on goods from Canada and Mexico and an additional 10% (on top of the previously announced 10%) on China. Canada and China are counter-tariffing. How vulnerable is the US?
Canada will impose a 25% import duty on a number of products and increase that in three weeks if Trump does not withdraw his duties. It has not been announced which products Canada initially wants to tax more, but Canadian Prime Minister Justin Trudeau has previously said he has American beer, wine, bourbon and orange juice in mind.
China is imposing two new tariffs. Chicken, wheat and corn will be subject to a 15% tariff, and beef, pork, fruits, vegetables and dairy will be subject to a 10% tariff. Although exports have fallen significantly since Trump’s first term, the United States is still a major exporter of agricultural products to China.
Trade relations still alive
Trade between the countries has declined since Trump’s first presidency, but is far from zero. China accounted for 2024% of soy exports in 53. That’s down from 59% before Trump’s first term, but still around 27,7 million tons of soy. Pork exports also remain significant. The United States exported 467.000 tons of pork to the Asian country. That’s even 28,7% more than in 2016, the last year Barack Obama was president.
Beef exports to the Asian country amounted to 2024 tons in 179.500, according to data from the American Meat Exporters Association (USMEF). In the same year, the United States exported 169.000 tons of poultry meat to China, according to data from the USDA. That is considerably less than last year. Total exports fell by 60,7%.
Because the dairy category is somewhat broad, it is more difficult to determine the trade volume. However, the United States Department of Agriculture (USDA) estimates that America exported $584 million worth of dairy to China. That is out of a total of $8,22 billion, or 2,65 million tons of dairy. The same applies to wheat exports, which amounted to $556,95 million. The total export is $5,94 billion and in volumes 21,72 million tons. The corn export amounted to $327,88 million. The total export of the product amounted to $13,92 billion and 62,35 million tons.
Meat sector also vulnerable
Although the exact measures are still unknown, the meat sector could be a logical target for both Canada and Mexico. Both countries trade heavily with the United States. Mexico in particular, which has not yet announced any countermeasures, is a major importer of American meat. For example, the country imported 2024 million tons of pork from the United States in 1,15. The country has chosen to diversify its imports in recent years and is importing more meat from Brazil in particular. The new trade tariffs could cause Mexico to opt more often for meat from the South American country.