Japan

President Trump Threatens New Round of Tariffs Over the Weekend: Here’s the Latest

Tue, 15 Jul 2025 13:39:36 GMT

U.S. commodity markets were down to start the week in Sunday night trade as the markets digested the latest tariff announcement by President Donald Trump. On Saturday, President Trump threatened to impose 30% tariffs on Mexico and the European Union starting on August 1. The announcement came after a string of new tariff threats last week, as the Trump administration’s deadline for trade deals came due.

On Monday, President Trump continued with tariff talk, saying he would implement “severe tariffs” on Russia unless a peace deal is reached with Ukraine within 50 days.

He provided few details on how they would be implemented but described them as 100% secondary tariffs, meaning they would target Russia’s trading partners in an effort to isolate Moscow in the global economy.

The latest tariff threats weren’t good news for farmers looking to price fertilizer for fall, as StoneX Group says Russia is the United States’ top destination for both urea and UAN imports. StoneX points out Russia’s market chair has “grown substantially in recent years.”

Monday’s news follows a week where many anticipated trade deals. Instead, President Trump made a series of announcements with new tariffs. The new tariffs on Mexico and the European Union, which Trump announced Saturday, capped off a week of sweeping tariff threats.

Earlier in the week, Trump warned of a possible:

50% tariff on all copper imports
50% tariff on all goods from Brazil
35% tariff on Canadian goods
25% tariff on goods from Japan
25% tariff on imports from South Korea
200% tariff on imported pharmaceuticals

The positive side of the announcements is the Trump administration says any products covered under the U.S. Mexico Canada Agreement (UMCA) won’t face the new tariffs.

President Trump also sent letters to both Japan and South Korea last week, saying their goods will be taxed at 25% starting August 1st.

The President posted the two letters he sent to those countries’ leaders on his Truth Social site. In the letter to South Korea, he stated when it comes to Korea’s tariff and non-tariff polices and trade barriers, the relationship between the two countries has been far from reciprocal. He added the 25% tariff was far less than what he says is needed to eliminate a trade deficit disparity.

The letter to Japan added if Japanese companies decide to build or manufacture a product within the U.S., there will be no tariffs. Japanese and U.S. negotiators have been working for several weeks to try and reach a deal.

Lack of Progress Impacts Commodity Prices
The lack of trade announcements last week was just one factor that caused corn prices to tank, according to AgMarket.net’s Matt Bennett. While rain in the upper Corn Belt was also bearish for the markets, little to no movement on trade is also pressuring prices.

“We had no trade announcements, and then we continued to talk about tariffs. The unfortunate reality right now is it appears the administration is playing the long game, trying to get people to come to the table with better trade deals than what we currently have seen. But it certainly isn’t doing any favors for the corn market,” Bennett said on U.S. Farm Report this weekend. “I think something like a big trade agreement certainly could tilt the tide more in the favor of the corn market moving higher. Until you get that, with weather being as good as what it is, there’s nothing there.”

It’s not all bearish, though. Arlan Suderman of StoneX Group says the 50% tariff on Brazil is actually bullish for beef.

“We already have a shortage of protein in America with the cattle herd being shrinking over recent years because of lingering drought in the western half of the country, and supplies are tight. We’re just getting to the point of trying to rebuild those supplies, which holding back heifers, tightens up the supply of meat even more. We’re feeding to record-high carcass weights to try to fill the void. We’re increasing imports to record levels. Brazil is the primary supplier of those imports: 27% of our imports come from Brazil in the first five months of the year, according to the latest data we have available, that’s 666 million pounds. That’s 4% of consumption,” Suderman says.

If you think 4% doesn’t sound like a big deal, Suderman says it is - especially considering meat demand in the U.S. has turned out to be inelastic.

“We’ve been shifting from a starch-based diet more heavily toward protein-based. And as the prices go up, we’re actually increasing demand for beef and the other proteins - but we don’t have the supply of it. I think that could be a real problem going forward for the meat industry and the meat supply. We will have to find somewhere else to get that meat,” Suderman says.

Are Trade Deals Close?

While President Trump initially stated he had reached trade agreements with 200 countries, only a few have been officially announced. These include deals with China, the United Kingdom, and Vietnam, however. Negotiations with other countries are ongoing, with the administration extending the deadline for tariff-related negotiations to August 1.

The European Union says it was working on sealing a trade deal with the U.S. by the end of this month, and the European Commission president says the EU was working closely with the Trump administration to reach a deal.

Ag Secretary Brooke Rollins Says New Deals May Be Struck Over Tariffs By End of Week

Wed, 09 Apr 2025 00:23:18 GMT

U.S. Agriculture Secretary Brooke Rollins said on Tuesday that new deals could be struck with other countries over trade tariffs by the end of this week.

Rollins made the comments in an interview to Fox News host Bret Baier on the network’s “Special Report” show.

Why It’s Important

President Donald Trump said last week that he would impose a 10% baseline tariff on all imports to the U.S. and higher duties on dozens of other countries, including some of Washington’s biggest trading partners, rattling global markets and bewildering U.S. allies.

After China retaliated with its own tariffs, the United States said on Tuesday that 104% duties on imports from China would take effect shortly after midnight, even as the Trump administration moved to quickly start talks with other trading partners targeted by Trump’s sweeping tariff plan.

“I believe, sincerely, it will be sooner rather than later. I believe we’ll be hearing about new deals that are being struck, perhaps by the end of the week,”

Rollins said, adding 70 countries had reached out to the U.S. for talks.

U.S. stocks dropped on Tuesday for a fourth straight trading day since Trump’s tariffs announcement last week.

The administration has scheduled talks with South Korea and Japan, two close allies and major trading partners, and Italian Prime Minister Giorgia Meloni is due to visit next week.
Trump’s sweeping tariffs have raised fears of recession and upended a global trading order that has been in place for decades.

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Japan, South Korea and China/Hong Kong Have Top Three Spots In Beef Export Market Share

Mon, 09 Dec 2024 18:43:47 GMT

The latest trade data for October continued recent trends in international beef trade. October beef exports were down just 0.3 percent year over year with the year-to-date total for the first ten months of the year down 2.6 percent (Figure 1). October beef imports were up 35.2 percent year over year in October with a January – October total up 22.5 percent over last year.

(Peel/USDA)

Japan has moved back into the top spot as the number one beef export market thus far in 2024, with a ten-month total unchanged from a year ago and a 21.8 percent share of total beef exports. Following closely is South Korea, in second place this year (down from number one last year), with a year-to-date total down 8.8 percent from last year and a 20.5 percent share of total beef exports. The combined China/Hong Kong market is number three, down 7.8 percent year over year thus far in 2024 and holding an 18.7 percent share of the beef export total. Mexico continues to show the strongest growth in major export markets with beef exports up 9.8 percent year over year thus far and an increasing 11.4 percent share. Number five Canada is down 7.2 percent in 2024 with an 8.5 percent share of beef exports. Taiwan is the number six beef export market with a year-to-date total down 2.6 percent and a 6.4 percent beef export share.

Australia has regained the top spot as a source of U.S. beef imports, with a ten-month total up a whopping 69.4 percent and a 22.7 percent share of the import total. Australia has not been the top beef import source for the U.S. since 2016. Canada has dropped to second place with a total thus far in 2024 up 1.3 percent and a 21.8 percent share. Brazil is the number three source of beef imports, up 52.0 percent thus far in the year and a 15.6 percent share of the import total. New Zealand is the fourth largest source of beef imports with a total through October up 6.3 percent year over year and a 13.0 percent share of total imports. Mexico is the fifth largest source of beef imports and is down 11.7 percent year over year with a 12.9 percent share of Beef imports. Uruguay is the number six beef import source, up 65.4 percent year over year and a 6.3 percent share of the total.

Canada and Mexico are both strong bilateral beef trade partners but are moving in opposite directions. Beef imports from Canada continue to grow and exports decline year over year while Mexico has decreased as an import source with beef exports to Mexico increasing this year and in 2023 from a recent low in 2022.

The sharp jump in total beef imports this year is in response to a 12.8 percent year over year decrease in nonfed beef production resulting from a 15.9 percent year over year decrease in cow slaughter through late November. Much of beef imports supply lean processing beef for hamburger and other processed beef products.

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Ag Industry Leaders Explore Consumer Demand for U.S. Red Meat Quality in Japan

Wed, 18 Sep 2024 23:25:39 GMT

A team of 21 farmers and farm group representatives traveled to Japan as the Heartland Team to see firsthand the promotion of U.S. beef and pork in the region by the U.S. Meat Export Federation. The team received market briefings from U.S. Embassy and USMEF staff, spoke with students at a culinary school, viewed U.S. product displays in retail outlets, visited a beef tongue processing facility, a wagyu farm and witnessed a beef carcass auction at the Tokyo Meat Market.

The utilization of beef tongue in Japan made an impression on the group, says Nebraska cattleman Mark Goes.

“Tongue product is everywhere, right down to tongue flavored pretzels,” he explains. “Japan imports a tremendous amount of tongue from the United States, and they have learned to utilize it to where it’s favored over ribeye steak for them.”

Surprisingly, the tongue is a standard and a staple for them there the group learned during their visit.

“I knew of that issue before, but to see it firsthand and the magnitude with which it’s ingrained into the society, it’s just incredible,” Goes adds.

Quality matters more than price in the Japanese market, which is a characteristic that sets the standard for U.S. pork production, according to Missouri pork producer Jesse Heimer.

“Relative to quality, Japan actually sets the standard in the United States,” Heimer says. “The quality standard at every plant is based on the color expectation that the Japanese customer wants. And believe it or not, our highest quality pork loins, much of our highest quality pork, ends up in this market here in Japan.

Heimer says that expectation for quality is the standard in the U.S. for export. He appreciated the opportunity to be face-to-face, and hand-to-hand, with customers in Japan.

“The Japanese consumer really appreciates our product, appreciates American pork,” he adds. “It was a great opportunity to see that relationship firsthand and understand that probably wouldn’t be possible without our partnership with USMEF.”

USMEF President and CEO Dan Halstrom says that’s why it’s important to bring producers to markets like Japan to share how U.S. product is raised.

“We have to continue to tell that story about quality and how we’re different, and I think having producers here in the marketplace, seeing the importance of that—that’s worth the value of the trip itself,” Halstrom explains.

Japan is the leading export market for U.S. beef by volume, totaling 149,051 metric tons through July of this year at a value of $1.2 billion. It is the number three market for U.S. pork exports at 208,121 metric tons with a value of $846 million through July.

Japan Gives Final Approval for Beef Trade Provisions

Mon, 28 Nov 2022 22:35:41 GMT

Japan’s parliament gave final approval to a deal amending a beef safeguard mechanism under the U.S./Japan trade agreement, which was signed by U.S. Trade Representative (USTR) Katherine Tai last week.

The change will reduce the probability that U.S. beef could be hit with higher Japanese tariffs, according to the Office of the USTR.

The updated safeguard “will ensure our farmers and ranchers continue to have access to one of the world’s most dynamic markets,” said Tai. “The protocol represents a foundational pillar of our bilateral trade relationship — and I am grateful to our producers and stakeholders who helped make it possible.”

(Farm Journal)

Japan was the second largest U.S. beef market in 2021, totaling $2.4 billion.

More on beef exports :

U.S. Beef and Pork Export Values Near $150 Million to Colombia
Mission to Market: Expanding Opportunities of U.S. Exports to the UK

Japanese Market Fully Opened for U.S. Beef; Tariffs Remain Concern

Thu, 22 Sep 2022 05:29:17 GMT

U.S. beef producers now have full access into the Japanese market after being restricted on entry for more than a decade and a half, but tariffs are still a limiting point compared to Japan’s other trade partners.

All age restrictions were lifted by Japan regarding U.S. beef on May 17, completely opening up the Japanese market for the first time since 2003. Previously, Japan had halted all imports of U.S. beef following the discovery of Bovine Spongiform Encephalopathy (BSE) in a U.S. cow about 16 years ago. Then in 2005 imports from cattle no more than 20 months of age resumed. The stipulation was then eased to cattle 30 months of age or younger in 2013.

Politicians and cattle groups like the National Cattlemen’s Beef Association (NCBA) and the U.S. Cattlemen’s Association (USCA) were applauding the move to completely allow U.S. beef.

“Putting American beef fully back on the menu in Japan will help our cattle ranchers grow their operations and continue to make a living off the land. This is a critical step in the right direction because we should be opening up foreign markets, not damaging longstanding trade alliances,” says U.S. Senator Jon Tester (D-MT) .

“U.S. beef has now secured a greater share of market access to the Japanese marketplace and we look forward to building on the $1.7 billion worth of U.S. beef that was sold to Japan in 2018,” says USCA President Kenny Graner.

Despite the win on gaining full entry to Japan for beef there are still tariffs to deal with. After the Trump Administration backed out of the Trans-Pacific Partnership (TPP) trade agreement, countries like Australia, Canada, New Zealand and Mexico all gained an advantage over the U.S. on access into Japan. The 10 other countries in TPP currently have a 26.6% tariff on beef going to Japan compared to 38.5% for U.S. beef.

“Now, we must focus on the negotiation of a bilateral trade agreement with Japan to bring down the 38.5% tariff the country places on our product,” Graner says.

Senator Tester adds, “I will continue to hold this Administration accountable by defending family farmers and ranchers against harmful tariffs and keep pushing to sell Montana beef to the world.”

While the issue of tariffs is important, NCBA President Jennifer Houston is optimistic that there could be some light at the end of the tunnel for narrowing that trade gap.

“Tariff rates grab all the headlines, but non-tariff barriers are often just as important, if not more so, when it comes to determining market access. Hopefully this will help spotlight this important point and lead to more trade victories in the near future,” she adds.

Countries in TPP will likely continue to see access into Japan increase as the agreement is slated to lower tariffs on beef to 9% by 2033.

For more on what Japan’s beef market potential could be and other beef related news watch the Drovers TV report from AgDay above or read the following stories:

Emerging Post-Pandemic, Consumers in Japan Remain Cautious

Tue, 16 Aug 2022 15:02:33 GMT

Though the COVID-19 pandemic seems so long ago, Japan, one of the largest export markets for U.S. pork and beef, is just starting to emerge from COVID restrictions, the U.S. Meat Export Federation (USMEF) reports.

Dan Halstrom, USMEF president and CEO, describes the country and how it is emerging post-pandemic.

“On my way in, [Japan] was the most empty I’ve seen it ever. I think it’ll take a little bit of time for the consumer in Japan to get used to the post-COVID environment,” he says. “It’s going to take a little bit of time for [consumers] to adjust and get used to that.”

Food service also seems to be rebounding at a slow pace.

“I was a bit surprised that food service hadn’t recovered any more than it had. People are fully masked inside and outside. The family style dining sector, especially the yakiniku sector, is seeing some rebound. But that isn’t true for the whole food service sector,” he adds.

Halstrom also believes there will be a lot of upside later in the year for food service, while retail and online e-commerce activity continues to boom.

While U.S. beef remains strong in the Japanese food service sector, Halstrom says Japanese buyers expressed a growing interest in retail pork.

“From the standpoint that certain cuts are maybe a little cheaper than beef, and also the fact that poultry [chicken] prices are so high in Japan, I think pork is well-positioned in that regard. There was a bit of optimism at retail in particular around pork, so that was encouraging,” he notes.

Japan's Growing Demand for Quality U.S. Beef is Officially Safeguarded

Fri, 03 Jun 2022 20:15:32 GMT

Japan is the United States’ largest export market for beef, according to the U.S. Meat Export Federation, with the country raking in 320,737 metric tons in 2021, up 5% from 2020.

To keep this upward trajectory going, a new three-trigger safeguard on beef under the U.S.-Japan Trade Agreement was signed into action on Friday to decrease the threat of beef trade interruptions.

According to the Office of the USTR, the safeguard will allow U.S. exporters to meet Japan’s growing demand for high-quality beef while minimizing the odds that Japan will increase tariffs.

“America’s farmers and ranchers have beef products that can compete anywhere in the globe,” said USDA Secretary Tom Vilsack. “This is a positive development for America’s farmers and ranchers. It allows for greater market-based growth in U.S. beef exports to Japan and reduces the probability of higher Japanese tariffs being imposed on U.S. goods.”

In following with the new agreement, the three triggers will enforce:
1. Japanese imports of U.S. beef at a level higher than previously established under the original agreement.
2. Japanese imports of U.S. beef be more than the volume of safeguarded beef imports agreed on in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
3. Imports of U.S. beef to Japan that exceed the total amount of beef imported from the U.S. in the previous year.

Kent Bacus, NCBA’s senior director of international trade and market access says the agreement “underscores the importance of a mutually beneficial relationship” between American cattle producers and Japanese consumers.

“We are hopeful that the improved safeguard will provide greater certainty for all segments of the supply chain,” he says.

U.S. beef exports in 2021 were four times higher than Japanese beef exports, coming in at over $10 billion. Japan made up $2.3 billion of the $10 billion in U.S. beef export sales in 2021.

More on ag trade:

U.S. and Japan Agree To Increase Beef Safeguard Trigger Level

What Biden’s New Economic Framework Means for Ag Trade

John Phipps: The Truth Behind the Numbers in Calculating Agriculture’s Trade Balance

Extreme Growth Potential with Indo-Pacific Economic Framework for U.S. Red Meat Exports

Mon, 25 Apr 2022 19:43:20 GMT

Trade talks with key trading partners on the Indo-Pacific Economic Framework are gearing up, and U.S. Meat Export Federation’s assistant vice president of export services Travis Arp has more details on how this might impact U.S. red meat exports.

“Looking at issues like science-based trade, good regulatory practices and transparency with regulations and things that can really open more opportunities for U.S. exporters in a multiple group of sectors,” Arp says will be on the agenda.

Submitting comments on the ‘resilient trade pillar’ of the framework, USMEF explains the economic impacts of the region’s trades.

“In 2021, Japan and South Korea were the largest volume and value markets for U.S. beef, importing a total of 320,737 and 280,143 metric tons (MT) of U.S. beef, respectively; valued at $2.376 billion and $2.382 billion, respectively,” the comments explained. “2021 U.S. pork exports to Japan and Korea were valued at $1.693 billion and $556 million, respectively, making Japan and Korea the second and fifth largest value markets for U.S. pork.”

USMEF’s comments explained that the value of U.S. beef exports to the region increased by 22% from 2020 to 2021, with a 65% in Indonesia alone. Meanwhile, U.S. pork export values increased by 26%, with a 78% increase in the Philippines alone. These statistics show extreme growth when considering the U.S. market share in these areas are relatively low.

As the economic framework is still under construction, Arp believes the goal is to strengthen trade relations with allies in Asia, seeing the region as an opportunity to improve market access and open these markets to U.S. exporters.

“There’s an opportunity to address some of these systemic barriers to trade,” Arp says. “Gaining more beef access into markets, like Korea, and creating more opportunities for plants to get approved in markets like Malaysia and Indonesia, then this could potentially pose a significant boost to red meat exports in the future.”

Other framework details include promoting science-based trade rules, establishing regionalization agreements in the event of a foreign animal disease outbreak, such as African swine fever , and tariffs, quotas and import licenses.

Read USMEF’s full comment detail here .

Record-Breaking Year for Red Meat Exports Spurred on by Trade Agreements

Tue, 15 Feb 2022 19:58:23 GMT

U.S. red meat exports in 2021 were valued at $18.7 billion, the highest in history. Multiple trade agreements aided in reaching those unprecedented levels. U.S. Meat Export Federation (USMEF) Economist Erin Borror weighed in on the recent report during the Weekly USMEF Audio Report.

BEEF

The reduction of tariff rates from 40% to 10.7% in the Korea-U.S. Free Trade Agreement (KORUS) boosted U.S. beef exports in 2021. Korea’s consumption per capita increased 40% compared to 2012, Borror said.

The largest tonnage of growth for U.S. beef demand spurred from the U.S. and China Phase One Economic and Trade Agreement. This increased competition resulted in an elevated value of the product.

The U.S-Japan Trade Agreement, though tariffs remain relatively high, also helped level the market playing field for U.S. beef.

In addition, beef exports saw tremendous growth into duty-free free trade agreement (FTA) partners such as Central America, the Dominican Republic, Colombia, Peru and Chile.

PORK

“Duty-free access into these Western Hemisphere markets was really critical in moving such a huge increase in volume at higher prices,” Borror said.

U.S. pork saw another record year of exports to Mexico, capitalizing on the U.S.-Mexico-Canada Agreement’s duty-free access.

Central America, specifically Colombia, rebounded in pork export demand, resulting in a 41% increase, despite pork cuts’ increased prices.

The U.S. rose as the top supplier for chilled pork in Korea and has further growth potential as tariffs have been eliminated, she added.

As seen in beef, the U.S.-Japan Trade Agreement boosted the position of U.S. pork in the highly competitive market. This agreement has also been essential in lowering tariffs of pork, formerly steady at 20% and set to decline to zero by 2025.

Japan To Raise Tariffs On U.S. Beef

Thu, 18 Mar 2021 20:03:20 GMT

Japan will increase tariffs on U.S. beef temporarily in an effort to slow import volumes. Currently set at 25.8%, the tariff will rise to 38.5% as early as this week, and will be in effect for one month, according to USDA’s Foreign Agricultural Service (FAS).

As part of a 2019 trade pact with the U.S., Japan is allowed to raise tariffs if beef imports reach 242,000 metric tons for the fiscal year. Japan Customs reported imports of US beef from April 1, 2020, to March 10, 2021, reached 242,229 tonnes, exceeding the safeguard trigger level. The temporary tariff increase will begin March 18 and end April 16.

The USJTA began in January of 2020, under which Japan committed to phasing out most tariffs, enacting tariff reductions, or implementing lower duties on a specific quantity of imports.

FAS said that under the USJTA, “…Japan immediately lowered tariffs on US beef from the most-favored nation rate of 38.5% to 26.6%. Tariffs were reduced further to 25.8% on April 1, 2020, and will eventually phase to 9% by 2033.

“The next round of tariff cuts was scheduled to occur on April 1, 2021, however due to imposition of the safeguard this will be delayed until April 17 when tariffs are reduced to 25%,” FAS added.

The Japan Times reported that Japanese consumption of U.S. beef has surged as imports from Australia has declined. The Australian beef market has seen prices spike and cattle supplies dwindle after years of drought.

Japanese Beef Lovers Seen Boosting Imports to 17-Year High

Fri, 20 Nov 2020 05:49:09 GMT

Japan’s beef purchases are set to climb this year as growing demand for affordable meat counters the first rise in import duties in 14 years.

Japan’s beef imports are likely to increase to the highest level since 2001 after growing more than 10 percent last year, Shiro Ohashi, executive director of the Japan Meat Traders Association, said in an interview in Tokyo on Thursday. Foreign beef is sought as a cheaper alternative to Japanese meat and fish, he said.

Beef consumption rose 6.8 percent in the seven months to Oct. 31, heading for the fastest annual expansion in at least 12 years, according to the latest data from the Agriculture Ministry. Japanese producers are unable to keep up with demand as elderly farmers are retiring without successors and as the domestic herd shrinks.

Premium Wagyu beef is becoming too expensive to buy for many Japanese as demand from overseas buyers is expanding, buoying prices, Ohashi said. Less fatty beef from Australia and the U.S. is becoming popular, especially among senior consumers, Ohashi said.

U.S. Beef Demand

U.S. beef imports are expanding at a faster pace than Australian shipments, even as Japan increased tariffs on U.S. frozen beef in August, because U.S. prices remain competitive, Ohashi said. In the 11 months through November, imports of U.S. beef climbed 26.6 percent from a year earlier and purchases from Australia rose 5.5 percent, according to the Agriculture Ministry. The U.S. accounts for 42 percent of total imports.

Japan’s imports of U.S. beef jump on strong demand and higher yen.

© Bloomberg

Noodle-shop operator Kourakuen Holdings Corp. decided last year to turn some of its restaurants to steak houses through a franchise agreement with Pepper Food Service Co Ltd, the operator of popular “Ikinari Steak” shops. Bronco Billy Co Ltd expects a 20 percent increase in operating profits this year as the company expands its steak restaurants.

“Regardless of the tariff increase, yen-based prices of U.S. beef have stayed low thanks to a weakening dollar,” he said. Low feed-grain prices in Chicago and an expanding American herd have also kept U.S. beef affordable, he said.

Imports are likely to expand in the medium term after Japan’s trade agreements with 10 Pacific nations and the European Union.

“Ireland is eager to boost beef shipments to Japan, taking advantage of the trade agreement, as the nation expects to lose sales in the U.K. because of Britain’s withdrawal from the EU,” Ohashi said. Shipments from Canada and Mexico will probably increase after the Trans-Pacific Partnership agreement is implemented.

U.S. Beef Producers Looking for Asian Markets After Japan Tariff Hike

Fri, 20 Nov 2020 05:48:49 GMT

Last week, Japan announced it would raise tariffs on frozen beef imported from the U.S., and the tougher fees went into effect Tuesday.

Since there’s no free trade agreement with Japan, the tariff increased from 38.5 percent to 50 percent. Australia has a trade deal with Japan and pays a 9 percent tariff.

Under World Trade Organization (WTO) rules, Japan can introduce safeguard tariffs when the country’s imports rise more than 17 percent year-on-year during any given quarter. They can also implement the safeguard tariffs to countries that don’t have a free trade agreement with them.

This has U.S. producers wondering if they can find another Asian market for their products.

“We have quite a way to go with China, but our exports to South Korea and Hong Kong have been strong this year as well as to Japan,” said John Nalivka, president and owner of Sterling Marketing, Agriculture Research and Consulting.

Currently, China has stipulations of U.S. beef being shipped into the country, including non-hormone. Nalivka said China’s impact probably won’t make a big difference short term.

Japan Considers Tariffs as Frozen Beef Imports Rise

Fri, 20 Nov 2020 05:48:45 GMT

Friday’s release of Japanese import data could pull the trigger on major disruptions in the U.S.-Japan beef trade.

The Japanese government is considering raising tariffs on frozen beef imports from the U.S. and some other countries from 38.5% to 50%—effective through next March—to protect the countries domestic producers. The tariff increase is automatic if quarterly beef imports from all nations and from countries that do not have economic partnership agreements (EPAs) with Japan both rise more than 17% from a year earlier, reports an official with Japan’s Ministry of Agriculture, Forestry and Fisheries (MAFF).

Japan was just approaching pre-BSE import levels of U.S. beef, but growth this year has outpaced many expectations. “Our exports of U.S. beef are up 30% this year,” says Greg Henderson, editor of Drovers, on AgriTalk this morning. “The value of those exports are up 35% from this time last year.”

The tariff would only be on frozen products, mostly used for processed foods and hamburger, not the muscle cuts and high end steaks the Japanese like, Henderson told AgriTalk. Click below to listen to the morning commentary.

Market Impacts

“Because it’s an automatic trigger, I think it takes some sting out of this for the market,” says Chip Flory, Farm Journal economist and host of Market Rally radio show, on AgriTalk.

The increase in tariff doesn’t mean we won’t ship frozen beef to Japan, a higher tariff will have an impact but it doesn’t mean zero, Flory reminded AgriTalk listeners.

While Japan was just reaching its pre-BSE import levels of U.S. beef, the increase tariff might stymie trade. The lack of a deal with Japan, and the U.S. backing away from the Trans-Pacific Partnership, means Australia, the other major beef supplier to Japan, has a greater opportunity to supply the country’s beef. Australia, Mexico and Chile have EPAs and would be exempt from tariff hikes. Together, the U.S. and Australia provide 90% of Japan’s beef imports.

Actions Have Consequences: TPP Fallout With Japan

Fri, 20 Nov 2020 05:48:45 GMT

They say for every action there is a reaction. We are seeing an example of that as Japan prepares to increase its tariff on us frozen beef from 38.5 percent to 50 percent.

U.S. frozen beef exports to Japan have topped 30 percent of their imports more than enough to automatically trigger the increase in place to protect local producers.

Obviously U.S. beef is popular in Japan.

While it remains to be seen what impact this will have on U.S. beef prices, the message is clear: lack of trade agreements leave us vulnerable to these types of protectionist moves.

The U.S. and Australia account for 90 percent of Japan’s frozen beef imports. Australia provides more than 50 percent of Japan’s frozen beef, but they are exempt from the tariff increase because they have a free trade agreement with Japan that is reducing tariff levels.

“Repeal” and “replace” are terms often used in the health care debate, but they also apply to trade. The decision by the Trump administration to pull out of the Trans-Pacific Partnership (TPP) repealed the deal for the U.S., but we are still waiting for the bilateral deals to replace it.

The pressure on the Trump administration increases as other countries form trade alliances without the U.S. As we have seen with healthcare, it’s one thing to criticize the current plan but you need to have something better to take its place.

No deal is better than a bad deal, but in this case no deal is a bad deal.

Japan Farmers seek aid for Radiation Zone Cattle

Fri, 20 Nov 2020 05:39:48 GMT

A pair of Japanese farmers whose livelihoods were wrecked by the 2011 nuclear disaster staged a protest Friday at Tokyo’s agriculture ministry, scuffling briefly with police as they unsuccessfully tried to unload a bull from a truck.

Masami Yoshizawa and fellow farmer Naoto Matsumura have remained at their farms seeking to care for their own and others’ abandoned livestock in areas where access has been restricted due to radiation fears since the March 2011 meltdowns at the Fukushima Dai-Ichi nuclear plant.

The two drove down from Fukushima, bringing the black bull in the back of a truck, to appeal for help with the livestock, some of which have developed unexplained white spots on their hides.

“Stop, stop, stop, stop,” shouted a policeman in a blue uniform who climbed into the back of the truck and blocked the farmers from leading the bull onto the pavement in front of the ministry. “It’s dangerous. Absolutely not!”

Yoshizawa and Matsumura are among thousands of farmers who lost their livelihoods when their farms, produce and livestock were declared off-limits and unsafe after the nuclear plant spewed radiation into the countryside after it was crippled by a massive earthquake and tsunami.

They want the farm ministry or other government agencies to help them figure out what is causing the spots on the animals’ hides and to stop culling abandoned livestock and burning radiation-contaminated vegetation they need to feed the animals.

“The ministry told us they don’t know what is causing the spots. Well, they need to do more research and figure it out. They can’t just run away, saying they don’t know,” Yoshizawa said.

Shouting through a megaphone, he urged the farm minister, Yoshimasa Hayashi, to come down and take a look for himself. Hayashi was not at the building, but at the parliament, and no other officials responded to Yoshizawa’s appeal, though the two were allowed to present a written appeal at the ministry’s reception desk.

Japan and Australia in Trade Pact to Lower Tariffs on Beef

Fri, 20 Nov 2020 05:38:51 GMT

By: Isabel Reynolds and Maiko Takahashi, Bloomberg

Japan and Australia reached broad agreement on bilateral trade after seven years of wrangling, in a pact that will lower or eliminate tariffs on everything from cars to canned tomatoes.

The terms of the agreement will see tariffs on frozen Australian beef eventually cut to 19.5 percent from 38.5 percent and those on Japanese cars, household appliances and electronics abolished, according to a statement from Prime Minister Tony Abbott’s office issued after he met with counterpart Shinzo Abe in Tokyo. Two-way trade between the nations in the 12 months to June 30 reached $64.1 billion.

“We have a deep, shared commitment to the universal aspirations of democracy, freedom and the rule of law,” Abbott said after meeting with Abe. “The relationship between Australia and Japan is about much more than economics and trade and growing wealthy together. It’s about respect, it’s about values. That’s why this is such a very strong partnership.”

Abbott, 56, is visiting Tokyo during his first North Asian trip since coming to power seven months ago. He is seeking to deepen trade and security ties with Japan while not damaging relations with China, Australia’s biggest trading partner. Japan, China and South Korea, which Abbott will also visit, buy more of Australia’s iron ore, coal and other exports than the rest of its customers combined.

The agreement is a “major windfall” for Australian beef, the country’s biggest agricultural export to Japan, Abbott’s office said in the statement. Cheese exporters will gain “significant new duty-free access” and tariffs on canned products such as tomatoes, peaches and pears, plus fruit and vegetable juices, will be removed, according to the statement.

TPP Spur
The trade deal with Japan could help spur progress on the U.S.-led Trans-Pacific Partnership to link the economies of 12 countries around the Pacific.

The agreement “with Australia will probably proceed ahead of TPP, so there will be a gap in tariffs between Australian beef and U.S. beef,” said Japan’s Ambassador to the TPP talks, Hiroshi Oe. “That will be very difficult for the U.S. beef industry. I think it would be good if that became an incentive for reaching an early agreement.”

Trade talks between Australia and Japan began in 2007, during Abe’s first term in office. Abbott has touted Japan as Australia’s “closest friend in Asia” and has pledged to strengthen defense ties at a time when China is flexing its military muscle in the region and Sino-Japanese ties have frayed.

U.S. Beef Gains Full Access to Japan Market

Fri, 20 Nov 2020 05:25:23 GMT

Japan on Friday lifted longstanding restrictions on U.S. beef in an agreement announced by USDA Secretary Sonny Perdue. The move is expected to pave the way for expanded sales to the U.S.’s top beef export market.

“This is great news for American cattle producers, and Secretary Sonny Perdue and the Trump Administration deserve a lot of credit for helping knock down this non-tariff trade barrier in Japan,” says Jennifer Houston, National Cattlemen’s Beef Association (NCBA) president. “This underscores the safety of the U.S. beef herd, and it will hopefully send a signal to other Asian nations that non-science-based trade barriers like this one should be eliminated in their countries, as well.”

“Tariff rates grab all the headlines, but non-tariff barriers are often just as important, if not more so, when it comes to determining market access. Hopefully this will help spotlight this important point and lead to more trade victories in the near future,” she adds.

Last week, on the margins of the G-20 Agriculture Ministerial Meeting in Niigata, Japan, Secretary Perdue met with Japanese government officials, even taking an unusual approach by barbequing U.S. beef to sell the benefits of further trade between the two countries.

This expanded access could increase U.S. beef and beef product exports to Japan by up to $200 million annually.

Japan had been importing increasing amounts of beef from Canada and New Zealand this year, as the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) was enacted.

The U.S. share of Japan’s beef imports for January and February was 39%, compared with an average of 41% for all of 2018.

The agreement is also an important step in normalizing trade with Japan, as Japan further aligns its import requirements with international standards for bovine spongiform encephalopathy (BSE).

More Coverage:

Secretary Perdue Barbecues to Sell Japanese on Buying More U.S. Beef

Drovers TV: U.S. Losing Ground in Japan Due to New Trade Deals

2018: Japan May Remove BSE-Linked Age Restriction

Japanese Wagyu Ranch Partners with Lab-Grown Meat Company

Fri, 13 Nov 2020 02:23:16 GMT

A renowned ranch in Japan known for its Wagyu genetics has partnered with a cell-cultured meat company in California to create lab-grown Wagyu beef.

Toriyama Ranch and JUST, Inc. made an official announcement earlier in December of the first of its kind partnership for a farm to provide genetic material to a cell-cultured meat company. Cells from Wagyu beef steaks and even cattle provided by Toriyama Ranch will be made exclusively available to JUST.

The plan is to start out with cell-cultured Wagyu ground beef hamburgers that can be marketed to a wider audience.

“The point is to deliver deliciousness to everyone,” says Wataru Toriyama, owner of the Toriyama Ranch and vice-president of the Toriyama Farming and Food Co., Ltd.

Toriyama Ranch is family owned and has been breeding Wagyu cattle in Japan for three generations.

San Francisco-based JUST, formerly known as Hampton Creek, is a food manufacturing startup that has created such products as eggless-mayonnaise and plant-based egg alternatives.

“We’re gonna make a damn burger and it’s going to taste like a Wagyu burger from Japan,” says Josh Tetrick, CEO of JUST.

Also partnering in the deal is meat and seafood exporter Awano Food Group .

“I’ve been in the meat industry for 30 years now,” says Awano executive Rod Martin. “I think JUST’s way of thinking about the products of the future is how the world will consume protein within 20 years.”

The topic of lab-grown meat has been somewhat controversial in the U.S. with large meat packers like Cargill and Tyson Foods owning shares in cell-cultured meat businesses. There has also been a debate on what to call the emerging products and what regulatory agencies should enforce the production of cell-cultured or “fake meat.”

For more on plant-based and lab-grown meat read the following stories:

Trade, COOL, Japan: Kent Bacus On NCBA Policy Priorities On AgriTalk

Fri, 13 Nov 2020 01:43:06 GMT

Selling more beef domestically and internationally, it’s a hot topic at the 2019 Cattle Industry Convention and NCBA Tradeshow.

To do so, NCBA leaders say trade issues have been, and continue to be, their top focus.

“If you look at NAFTA, it’s been a tremendous opportunity for the U.S. beef industry,” said Kent Bacus, director of trade and market access for the National Cattlemen’s Beef Association (NCBA) in an interview with AgriTalk. “We’ve maximized our sales in both Canada and Mexico, we don’t want to jeopardize that by any means at all. So, we were excited with the United States-Mexico-Canada Agreement (USMCA) because it doesn’t change any of the terms for us, you know, we still have unrestricted duty-free access to both Canada and Mexico. We didn’t see resurgence of any bad policies, like mandatory country of origin labeling that would jeopardize that trade, so this is a good thing we just needed to move forward.”

That will take cooperation with other members of the agricultural industry to pressure Congress to bring it up and ratify it. And just because the agreement has been signed, doesn’t mean it’s going into effect—the governments of Canada and Mexico still have to ratify the agreement as well.

“With the number of cattle that we got out there on feed right now, we better have some place take the beef,” said Chip Flory, host of AgriTalk.

“We’ve got to move that product. And with 96% of the world’s population living outside our borders that’s the best place to move it,” Bacus said. “That’s really the priority for us—try to find the best way to maximize our sales because we’ve got to sell all parts of the cow. It’s not just meats. It’s also the hides, tallow, everything. Nothing goes to waste.”

But to move forward will require bipartisan work. “We’re hopeful that we’ll be able to find a path forward and get it some kind of bipartisan effort to move this forward, but realistically, we’re in a presidential election cycle. Will Nancy Pelosi give Donald Trump any victories at all? That’s yet to be seen,” he told Flory.

Flory did raise the question: Should mandatory country-of-origin labeling (COOL) be back on the table?

“Mandatory COOL was the law of the land for five years,” Bacus said. “What did it accomplish? It cost the industry hundreds of millions of dollars in compliance fees, it did nothing to drive demand, it had nothing to build sales. All it did was it took us the WTO, hitting us with a billion dollars in retaliatory tariffs—we don’t want that to happen.”

“Yes, the industry can market our product better than the federal government ever can. That’s what mandatory COOL is—a government run labeling program. It didn’t work then and it’s not going to work again,” he added.

Japan Trade Hits Critical Juncture

“That’s our biggest export market, by far. It’s about 25% of our overall sales. We will exceed $2 billion dollars in sales when we get the final 2018 numbers in. That’s a huge market for us. It’s not just beef tongues, it’s a lot of other cuts as well,” Bacus said. “The problem is we still face the 38½% tariff in that market.”

The U.S. pulled out of the Trans Pacific Partnership, which was implemented on Dec. 30, 2018, and now our beef competitors, including Australia, New Zealand, Canada and Mexico, are all supplying that Japanese market.

“There’s no other market that can absorb the beef volume and the value of what we’re selling into Japan,” Bacus stressed. “We have to have a trade agreement that will level the playing field for us. This is a top priority for us and it should be a top priority for everybody in the U.S. beef industry and agriculture.”

Click the player above to hear what Bacus said about the issue of mandatory country of origin labeling, and the growing importance of the South Korean market.