China cancels order for 12,000 tons of U.S. pork, setting a new record since the pandemic and affecting U.S.-China trade and shipping costs.

In April 2025, trade tensions between China and the United States intensified as China canceled an order for 12,000 tons of American pork, marking the highest cancellation level since 2020 and leading to a 72% drop in U.S. pork exports. This move was a counteraction to the United States' high tariff policies and accelerated China's shift towards sourcing from countries such as Brazil. Meanwhile, the Shanghai Containerized Freight Index fell for two consecutive weeks. Despite a sharp 40% decrease in cargo volume on routes from mainland China to North America, freight rates saw a slight increase, indicating a combination of market supply-demand adjustments and a cautious wait-and-see approach.

China Cancels U.S. Pork Orders, Export Volume Hits Five-Year Low

According to data released by the U.S. Department of Agriculture (USDA) on April 24, 2025, China canceled 12,000 tons of U.S. pork orders in the week ending April 17, causing the total U.S. pork exports for that week to drop to just 5,800 tons, a sharp decline of 72% from the previous week, marking the lowest weekly delivery volume since 2020.

This wave of cancellations occurred amid escalating tariff confrontations between the U.S. and China. Recently, President Trump imposed tariffs as high as 145% on Chinese goods, while China retaliated with comprehensive tariffs of up to 172% on U.S. pork, covering multiple rounds of tariff increases since the 2018 trade war.

Aaron Juergens, chairman of the Iowa Pork Producers Association, stated that the tariff policies have severely impacted pork farmers who rely on stable exports, and he urged the U.S. government to restart negotiations with China to remove trade barriers.

Chinese Market Turns to Brazil and Other Countries, U.S. Pork Market Share Declines

China is the world's largest pork importer, importing a total of 416,000 tons of pork from the U.S. in 2024, accounting for 18% of China's total pork imports. However, under the pressure of high tariffs, China has gradually increased its purchases from countries like Brazil and Argentina, causing U.S. pork's market share in China to shrink.

According to the U.S. Meat Export Federation, China was the third-largest export market for U.S. pork in 2024, following Mexico and Japan. The U.S. is also China's third-largest meat supplier, after Brazil and Argentina.

A Chinese livestock company representative pointed out that tariffs have caused U.S. pork to lose its price advantage in China, significantly increasing import costs. Although China's pork market also faces pressures such as rising feed prices, domestic supply can still be maintained through policies like releasing reserve meat.

SCFI Freight Index Drops for Two Straight Weeks, North America Line Volume Drops by 40%

In the freight market, the latest data from the Shanghai Shipping Exchange shows that as of April 18, 2025, the Shanghai Containerized Freight Index (SCFI) was at 1370.58 points, down 24.1 points from the previous week, a weekly decline of 1.7%, marking the second consecutive week of decline.

On the Far East to West Coast U.S. route, the freight rate per 40-foot equivalent unit (FEU) was $2,103, a weekly decline of 4.5%; the Far East to East Coast U.S. route saw a slight increase of 0.77% to $3,251. The Europe and Mediterranean routes fell by 2.95% and rose by 0.79%, respectively.

Despite the overall decline in the SCFI index, freight rates on the China to North America routes showed a slight increase. According to the Economic Daily, the latest weekly rate for the Far East to West Coast U.S. route increased by $38 to $2,141 per FEU, a rise of 1.8%; the Far East to East Coast U.S. route increased by $6 to $3,257 per FEU, a rise of 0.18%.

Logistics providers noted that although the volume of goods from China to North America has decreased by about 40%, freight rates have not seen a significant decline, indicating that there is still rigid market demand, with some shippers choosing to delay shipments due to high tariffs, indicating a strong wait-and-see attitude.

Reduced Capacity on China-U.S. Routes, Supply Chain Adjustments Ongoing

Evergreen Marine stated that due to the impact of high tariff policies, China's import and export volume has shrunk by 60% to 70%, with overall April capacity reduced by 30% to 40%. Although some urgent orders have shifted to Southeast Asia, the transfer speed is not as expected, and shipping companies can only respond by skipping sailings and adjusting route configurations.

Wu Guanghui, General Manager of Evergreen, said that the Pacific route's second-quarter volume has indeed been impacted, but it is currently a matter of deferred shipment times rather than a disappearance of demand. He noted that although the trade dependency between China and the U.S. remains high, supply chain adjustments need time and infrastructure support, making it difficult to completely replace in the short term.

China cancels order for 12,000 tons of U.S. pork, setting a new record since the pandemic and affecting U.S.-China trade and shipping costs.

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