Pork-food manufacturing company across the US are quite perturbed post Beijing’s imposition of tariffs on US exports.Pork-food manufacturers acknowledge that Beijing’s stance on US has adversely affected their business. The Chinese say that their actions are just in response to US’s imposition of tariffs on the imports of steel by China and other selected countries.In the US, the Virginia based business Smithfield Foods China is deeply affected by the trade war between the US and the China. However, in this context, it is relevant to say that there are many Chinese firms which are indirectly affected by the Beijing’s imposition of tariffs on the US exports of pork-food or other stuff. The WH Group in 2013 bought the Smithfield Foods China at around $1.1 billion. This deal was regarded as the most significant one at that time.
Intensifying Sino-US Trade War has Hurt Smithfield Foods China
Many US companies including the Smithfield Foods China believe that China has a huge market for pork meat. Earlier, the companies made immense profits by selling pork to China. However, the intensifying trade war has diminished profit levels of the companies. According to a Smithfield CEO, the company was listed high in the international stock exchanges before the trade restrictions. However, after the trade restrictions, the company stock prices fell sharply. Though many US based businesses are of the opinion that globally there are other countries who are regular consumers of pork and so selling pork meat to these countries is a better notion in such times.
China and the US have strained international relations. Earlier, the US had imposed trade restrictions on China and other countries. It has imposed tariffs on the Chinese import of steel. This followed Beijing’s decision to impose trade restrictions on a number of products from the US. The US is further pondering to impose tariffs citing violations of intellectual property rights.