On Sunday, China's customs website revealed that export registrations for over 1,000 U.S. meat plants, granted under the 2020 "Phase 1" trade deal, had expired. This development poses a threat to U.S. exports to China, the world's largest buyer, amidst an ongoing tariff stand-off.
The registration status for pork, beef, and poultry plants across the U.S., including those belonging to major producers like Tyson Foods, Smithfield Packaged Meats, and Cargill Meat Solutions, shifted from "effective" to "expired", as confirmed by China's General Administration of Customs website.
Around two-thirds of the total registered facilities being affected by the expiration could potentially limit U.S. market access and result in roughly $5 billion in losses. This comes as American farmers already face challenges following Beijing's recent imposition of tariffs on around $21 billion worth of American farm goods.
In February, registrations for approximately 84 U.S. plants had expired. Although shipments from these plants continue to clear customs, the duration for which China will permit imports remains uncertain. Food exporters are required by Beijing to register with customs to sell their products in China.
The U.S. Department of Agriculture expressed concerns that China has not responded to repeated requests to update the approved plant list, possibly breaching the Phase 1 trade agreement, which mandates China to review and update its approved plant list within 20 days of receiving updates from the USDA.
Notably, the U.S. was China's third-largest meat supplier by volume in 2024, following Brazil and Argentina, providing 590,000 tons or 9% of China's total meat imports. Last year, U.S. meat shipments to China were valued at $2.5 billion, solidifying its position as the second-largest exporter by value.
If access to the Chinese market is lost, exporters of items like chicken feet and pork offal, which have lower domestic demand, would suffer significantly. CEO Shane Smith highlighted that tariffs have made it challenging for the largest U.S. pork processor to sell all parts of a pig. While Smithfield mainly exports offal products to China, such as pig stomachs, hearts, and heads.