A new study commissioned by a coalition of agriculture and export groups warns that proposed U.S. port fees targeting Chinese-built or operated cargo ships could deliver a heavy blow to American meat exports, including pork.
The recommendations, currently under review by the U.S. Trade Representative (USTR), propose multi-million-dollar fees on vessels connected to China in an effort to bolster U.S. shipbuilding. But according to the study, such measures would backfire—raising transportation costs, reducing global competitiveness, and harming U.S. agriculture in the process.
3% to 6% Pork Export Hit Expected
The research, conducted by Trade Partnership Worldwide LLC, projects pork and poultry exports could drop by as much as 6% if the most severe version of the policy is enacted. Beef exports would be hit even harder, potentially falling by up to 8.25%.
The U.S. pork industry exports 25% of its production annually. Losing even a fraction of that share due to higher shipping costs would have a serious impact on producers, processors, and rural economies that depend on international trade.
No Real Workarounds
The study points out that even rerouting shipments through ports in Canada or Mexico would offer little relief. Logistical limitations and infrastructure constraints in neighboring countries mean most U.S. exporters would still face higher costs and fewer shipping options.
Competitive Disadvantage on the Global Stage
The biggest beneficiaries of this policy? Competitors in Brazil, Canada, Russia, and Australia, who would gain market share at the expense of U.S. producers. Pork, beef, poultry, and soybean exports are all expected to decline as shippers avoid costly U.S. port fees by skipping U.S. ports altogether.
Industry Reaction
Leaders across the agriculture sector are urging policymakers to reconsider. “This is a lose-lose for U.S. producers and exporters,” one industry advocate stated. “We support strengthening domestic industries, but not at the expense of farm families and food exports.”
With 13% of U.S. beef, 15% of poultry, and 25% of pork heading overseas each year, the stakes are high. The report concludes that all proposed remedies would subtract from U.S. economic output and widen the trade deficit—at a time when export competitiveness is more important than ever.
Swine Web will continue to monitor this developing story and its implications for the pork industry.
