In case you missed it, local Australian media reported on Friday about a significant development involving US companies and their meat exports to China. Come Sunday, if their licenses aren’t renewed, hundreds of American businesses that export meat will see their permissions expire, putting a massive $3 billion worth of beef, pork, and chicken trade at risk. Some estimates I’ve come across even suggest the figure might be as high as $5 billion.
To add more context, nearly 1,000 export registrations are on the verge of expiration. So far, there hasn’t been any response from Chinese authorities regarding these renewal requests. This whole situation ties back to the initial trade agreements negotiated during Trump’s first term. Earlier in March, China slapped retaliatory tariffs on about $21 billion worth of American agricultural products.
I’m racking my brain trying to envision a scenario where China might decide to renew these licenses, but honestly, I’m struggling to find a reason for them to do so. The impacts of the trade war that began under Trump seem to keep intensifying with no signs of easing.
