China to boost food imports from Latin America, Europe as US trade war escalates

By Naveen Thukral and Mei Mei Chu

SINGAPORE/BEIJING (Reuters) - China's caller tariffs connected U.S. workplace goods are poised to reshape planetary commercialized flows, prompting the world's apical cultivation importer to root much meat, dairy and grains from countries successful South America, Europe and the Pacific.

Shipments to China from cardinal soybean supplier Brazil, apical wheat exporter Australia and large pork supplier Europe, could surge arsenic a commercialized warfare hots up betwixt the world's largest economies, manufacture officials and analysts said.

China retaliated swiftly connected Tuesday against caller U.S. duties, announcing hikes of 10% and 15% to import levies covering $21 cardinal worthy of American cultivation goods.

"There volition beryllium rerouting of commercialized aft China's import tariffs connected U.S. goods," said Pan Chenjun, a elder expert for carnal macromolecule astatine Rabobank successful Hong Kong.

"The main products that volition beryllium impacted are pork offal and chickenhearted feet. For pork, some musculus and offal, China volition get much supplies from Brazil, Spain, the Netherlands and different EU countries."

China is the largest marketplace for U.S. workplace exports, taking $29.25 cardinal worthy of products successful 2024, and immoderate displacement successful commercialized flows could make opportunities for rival exporters.

That would proceed a inclination successful which China has curbed dependence connected U.S. agriculture since the commercialized warfare during President Donald Trump's archetypal term.

On Tuesday, Trump besides imposed duties connected goods from Canada and Mexico, which could wounded the $191-billion U.S. cultivation export industry.

NOT ENOUGH CHICKEN FEET

China imported $16.26 cardinal worthy of U.S. beef, pork and chicken, including offal successful 2024, but successful its counteroffensive, it has unveiled tariffs of 15% connected U.S. chickenhearted products and 10% connected pork and beef.

European and South American nutrient shipments to China are expected to emergence arsenic a result, analysts said. While China initiated anti-dumping investigations into imports of European Union pork and dairy past year, income person not been affected.

However, China's reliance connected the United States for chickenhearted feet is apt to continue, arsenic alternatives would beryllium hard to root afloat and quickly, said Pan.

"Importers of chickenhearted feet volition conscionable wage the work and import from the United States successful the meantime," Pan said.

China is simply a cardinal importer of U.S. chickenhearted feet, pork ears and offal - items valued successful its cuisine, but successful small request successful the United States.

MORE BRAZILIAN, AUSTRALIAN GRAINS

About fractional of U.S. soybean exports spell to China, adjacent though the world's No. 1 purchaser has reduced its dependence connected American oilseeds since Trump's archetypal term.