China to boost food imports from Latin America

SINGAPORE/BEIJING, Mar 05 (Reuters): China's new tariffs on US farm goods are poised to reshape global trade flows, prompting the world's top agricultural importer to source more meat, dairy and grains from countries in South America, Europe and the Pacific.

Shipments to China from key soybean supplier Brazil, top wheat exporter Australia and major pork supplier Europe, could surge as a trade war hots up between the world's largest economies, industry officials and analysts said.

China retaliated swiftly on Tuesday against fresh US duties, announcing hikes of 10 per cent and 15 per cent to import levies covering $21 billion worth of American agricultural goods.

"There will be rerouting of trade after China's import tariffs on US goods," said Pan Chenjun, a senior analyst for animal protein at Rabobank in Hong Kong.

"The main products that will be impacted are pork offal and chicken feet. For pork, both muscle and offal, China will get more supplies from Brazil, Spain, the Netherlands and other EU countries."

China is the largest market for US farm exports, taking $29.25 billion worth of products in 2024, and any shift in trade flows could create opportunities for rival exporters.