Capital Update – For the Week Ending April 11, 2025

Capital Update Audio Version Now Available!

Pork Producers Lobby Lawmakers on Legislative Priorities

What happened: More than 120 pork producers from 21 states were in Washington, DC, for NPPC's spring Legislative Action Conference, lobbying congressional lawmakers on several issues important to the U.S. pork industry.

NPPC producer leadership also participated in meetings at the White House with senior Trump administration officials, as well as with U.S. Department of Labor Secretary Lori Chavez-DeRemer and Environmental Protection Agency Administrator Lee Zeldin.

Pork producers heard from House Agriculture Committee Chairman G.T. Thompson (R-PA) and Representative Don Davis (D-N.C.).

Why it matters: NPPC's biannual legislative fly-in is an important opportunity for its pork producer members to help advance various issues of importance to the U.S. pork industry and for policymakers to learn about the many benefits the industry provides in their districts, states, and throughout the country.

NPPC officers meet with Labor Secretary Lori Chavez-DeRemer (second from left) on H-2A visa reforms for the pork industry and other non-seasonal industries.

NPPC board of directors meet with senior Trump administration officials from the U.S. Department of Agriculture and the Office of the U.S. Trade Representative.

South Dakota pork producers meet with Senate Majority Leader John Thune (R-S.D.), second from left.

Iowa pork producers thank Sen. Joni Ernst (R-IA), center, for introducing legislation to fix California Proposition 12.

Senators Introduce Legislation to Fix Proposition 12

What happened: Sens. Joni Ernst (R-IA), Chuck Grassley (R-IA), and Roger Marshall (R-KS) introduced the Food Security and Farm Protection Act to fix problems caused by California's Proposition 12 and pre-empt other states from approving agricultural production laws that affect producers outside their borders.

Bipartisan support for providing relief from a patchwork of state laws continues to grow with support from President Donald Trump, former President Joe Biden, and their respective Agriculture Secretaries Brooke Rollins and Tom Vilsack.

At his confirmation hearing last week, Stephen Vaden, whom Trump nominated to be deputy secretary of Agriculture, noted when he was USDA general counsel in Trump's first term, the agency was "very active in supporting the efforts of those who challenged the proposition."

NPPC's take: "We thank Senators Ernst, Grassley, and Marshall for standing up for the American pork producer, especially during these times of uncertainty," said NPPC President Duane Stateler, a pork producer from McComb, Ohio. "U.S. pork producers have just suffered the worst 18 months of financial losses in history, and many farm families are contemplating whether they can pass along their farm to the next generation. We urge the Senate to take up this legislation immediately to provide us much-needed relief."

Why it matters: Without the certainty of a Prop. 12 fix, there will be:

• Widespread, damaging consequences for farmers and consumers alike.
• Significant fees forced on producers to pay for outside regulators to audit their farms due to the whims of consumers outside their state's borders.
• Risk of putting farm families out of business by significantly increasing the cost of raising pigs.
• Increased prices at the grocery store, as much as 41% for certain pork products.

Trump Increases China Tariffs, Temporarily Lowers Others' Reciprocal Tariffs

What happened: In a busy week for international trade, President Donald Trump made several tariff announcements.

All countries' previously imposed reciprocal tariffs - except China - will be lowered to 10 percent for the next 90 days, as Trump embraces outreach from countries seeking to negotiate trade deals. U.S. actions and subsequent responses to retaliation have set new tariffs on Chinese shipments to the U.S. at 125%, at press time, while also increasing duties on de minimis products imported from China. As Canada and Mexico were excluded from the original reciprocal tariffs announcement, there has been no change on tariffs for goods imported from the two countries.

NPPC urges the Trump administration to support U.S. pork exports by negotiating new market access for U.S. pork, particularly the elimination of all tariff and non-tariff barriers to trade that still exist between the U.S. and Vietnam.

China's retaliation against the U.S. has led to an effective tariff rate of 172% on pork exports to that market. As of press time, there are no retaliatory tariffs by Mexico on U.S. pork. Canada has imposed retaliatory tariffs on a small amount of processed U.S. pork products.

NPPC's take: While relieved that reciprocal tariffs have been temporarily lowered through a pause, U.S. pork producers remain at the tip of the spear with China tariffs. A 172% tariff on U.S. pork to China makes it impossible for American pork producers to compete in that market. Tariffs, however, makes it easier for U.S. competitors - other countries - to thrive in our once dependable market, the third largest export market for U.S. pork.

Why it matters: Pork producers need certainty and stability - now as much as ever. More than 25% of pork production is exported to high-value markets around the world, and U.S. pork exports support over 140,000 jobs domestically.

U.S. Pork Exports Down Slightly for January-February 2025

What happened: January-February pork exports were down 2% in value and 3% in volume compared with the same period in 2024, with February exports down 2% in value and 4% in volume compared with year-ago levels, despite continued strong demand from Mexico and Central America, according to data recently released by the U.S. Departments of Agriculture and Commerce and compiled by the U.S. Meat Export Federation.

The U.S. pork industry in February exported more than 241,000 metric tons of pork valued at $671.5 million. Mexico, the industry's No. 1 export market, imported more than $200 million of product, the eighth consecutive month it has taken at least that much. Pork shipments there in the first two months of the year were 7% higher than January-February 2024. Exports to Costa Rica, Guatemala, and Honduras were up 93%, 32%, and 23% in value, respectively.

The overall small drop in exports was due in large part to lower shipments to top markets Canada, Japan, and South Korea. Those countries took 8%, 19%, and 20% less pork in January-February 2025 compared with the same period last year. Other countries showing positive growth in U.S. pork imports over the first two months of the year compared with 2024 included China (9%), Cuba (169%), New Zealand (59%), and the Philippines (48%).

What it means for producers: U.S. pork producers are dependent on exports, which in 2024 were a record $8.6 billion, equating to an average of more than $66 in value from each hog marketed. That was up about 4% from 2023, and accounted for 25% of total production. Pork exports support more than 140,000 U.S. jobs.

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