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Chinese-Owned Smithfield Will Pay Pork Tariffs
China’s recent announcement of an additional 25% tariff on U.S. pork products has led to questions about what this means for Smithfield Foods. Smithfield is the largest pork producer in the U.S., according to Successful Farming magazine’s annual Pork Powerhouses® ranking, with 930,000 sows. Smithfield is also owned by the Chinese company WH Group.
According to Smithfield representatives, the company will pay China’s new retaliatory tariff on pork, too.
“Smithfield is an American company, so the additional 25% tariff is applicable to any pork we produce in the U.S. and export to China just like all other U.S. producers/processors,” says Keira Lombardo, senior vice president of corporate affairs for Smithfield, based in Smithfield, Virginia. “Remember, there was already a longstanding tariff in place (12% on frozen pork), which we have been paying all along — before and after the WH Group acquisition in 2013.”
The majority of product shipped to China is offal (also called variety meats), says Lombardo.
Weekly Outlook: Pork Tariffs Sour Industry Outlook: The 2018 outlook early this year was for modest profitability. Now, it has shifted to losses plus higher costs and lost exports as China has implemented a 25% tariff on U.S. pork.