China has responded to the US decision to impose tariffs on steel by targeting US food exports to China.

A tariff of 15% will be applied to a range of 120 food and drink products, with a tariff of 25% being imposed on a further eight products including pigmeat.

The combined value of the products is estimated at $3bn, with pigment being the largest single category.

In 2017, according to the US meat export federation, China bought 496,000t of US pigmeat worth $1.1bn. This made China the second most important market for US pigmeat after Mexico.

This tariff will make US pigmeat exceptionally expensive relative to other suppliers in the Chinese market, which imports 1.7m tonnes annually, according to Bord Bia.

It also comes at a time when the US pig breeding is at its highest since records began in 1983 at 73.5m sows.

For Ireland, China is our second most important export market after the UK.

In 2017, €93m of Ireland’s total pigmeat exports of €712m went to China, and these tariffs on US supplies will have the effect of making Irish exports more competitive in the Chinese market.

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