US tariffs hit European ag machinery markets
The climate of uncertainty and market fragmentation that currently characterises the global economy suggests that many of the European agricultural machinery manufacturers will be looking for new markets.
While Beef + Lamb NZ and Meat Industry Association (MIA) are seeking clarification from Washington, it appears that an additional 15% tariff imposed on NZ beef three months ago this year, is gone.
“We are still seeking clarification on the exact details of the decision. However, based on our initial analysis, it appears the US has removed the additional 15% tariff on our beef that was imposed under the bilateral tariffs applied across the board on the 1st August”, says Kate Acland, B+LNZ chair.
“This means that our beef will go back to facing a tariff of less than 1% under our WTO country specific tariff rate quota and will restore a level-playing field with our key competitors”.
Nathan Guy, Chair of the Meat Industry Association says the US is New Zealand’s largest beef market.
“This will be a boost for our exporters as it reduces the uncertainty they had been experiencing in the last few months.
“Since these additional tariffs were imposed, volumes of New Zealand’s beef and lamb to the US have decreased compared to last year, despite strong demand and firm prices. Since April, New Zealand beef imports into the US have incurred tariffs costs of over NZ$300million.
“Clearly the tariffs have been having an impact on US food inflation, so this is a sensible move to alleviate the pressure on US consumers.
“With US production at 70-year lows and consumption at record levels, the US needs our high-quality red meat.”
Acland added “New Zealand is a complementary trading partner, being an important source of lean beef that is mixed with US domestic grain-fed beef to produce burger patties. It is also becoming an important sheepmeat market for high value premium cuts.
“We hope the U.S. will also consider taking a similar approach to New Zealand lamb, which still continues to face an additional 15% tariff and has been experiencing similarly high prices.”
