The United States was one of the main exporters of beef to China, but the tension between both countries and the tariff war has ended this relationship. The winner of the situation is Australia, which is already the country that exports the most beef to China, but also one of the main partners of the United States.
What is happening. There was no official statement from the government. Last March, China did not renew its beef export licenses with the United States and has found a new partner to meet demand: Australia. Beef exports have increased 35% in the first half of the year and the Australian livestock sector has already invoiced 6.6 billion dollars, according to Nikkei Asia. Shipments to the Chinese market have grown by 65%, but they have also increased to the United States by 48%. It’s a double victory.
Why it is important. China is the largest importer of agricultural products and is using this stance to harm the United States. They already did it with their decision to stop buying soybeans from the United Stateswhich was their main supplier, and now they have done it with beef. The beef trade between the United States and China produced around 120 million dollars a month. Now that number is zero. It is another example that dismantles Trump’s storywhich defends tariffs as a beneficial measure for the United States.
Skyrocketing prices. The price of meat reached its all-time high last September, according to data from United Nations. In particular, the increase in the price of beef is caused by several factors. On the one hand, the decrease in production in countries such as the United States, New Zealand and Europe. In the United States specifically, the shortage has been caused because of the drought. On the other hand, tariffs and geopolitical tensions have put pressure on international market prices. The game board has been reconfigured, with the United States and China turning primarily to Australia and Brazil to meet their demand.
perfect position. At least for the moment, Australia wins because it is in a good position with the main meat importers. In China they are already the first supplier of beef, while in the United States they are the second behind Brazil. The key is that while Trump imposed 50% tariffs on Brazilin Australia they only have 10% because they mainly export minced meat for hamburgers.
Australia and China. There was not always harmony between the two nations. In 2020, China suspended imports of Australian beef. The reason given was labeling problems for some products, but everything indicates that the decision had more to do with the critical stance of the Australian government about China’s handling of the coronavirus.
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