[UPDATED] Chicago | Reuters—Canada has suspended imports from the biggest U.S. pork processing plant, a facility run by Smithfield Foods in Tar Heel, North Carolina, the company said on Friday.
The suspension comes as the U.S. and Canada have engaged in a heated dispute over trade tariffs.
Why it matters: Canada-U.S. agricultural trade hangs in the balance as tariff talks continue
It is the latest blow for America’s farm sector, which has been roiled by concerns that U.S. tariffs will spark retaliation from top importers that reduces demand for American agricultural products.
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The U.S. Department of Agriculture said the suspension was in line with standard protocols and unrelated to recent trade activity. The agency and Smithfield, the largest U.S. pork processor, did not specify what triggered Canada’s action.
“Under Canada’s policy, three noncompliance issues within six months trigger a temporary suspension,” USDA said.
Blocking shipments from the plant limits a market for U.S. pork products.
USDA is working with Smithfield to address the issues and develop a corrective action plan that will be communicated to Canadian authorities, according to an agency statement.
“Once reviewed and accepted, Canada may consider reinstating the plant’s export eligibility,” USDA said.
Canada halted imports from the facility on Thursday, according to a USDA website.
“The issue pertains to a limited number of certain offal shipments,” Smithfield spokesman Jim Monroe said.
Smithfield shares were nearly flat on Friday.
U.S. President Donald Trump exempted goods from Canada and Mexico on Thursday under a North American trade pact for a month from the 25 per cent tariffs he imposed earlier this week.
Canada was the fifth-largest export market for U.S. pork last year, according to U.S. government data. Though shipments slipped, they were valued at about $850 million.
U.S. pork has a significant presence in the Canadian retail and foodservice sectors, said Joe Schuele, spokesman for the U.S. Meat Export Federation, an industry group.
Smithfield, whose brands include Eckrich and Nathan’s Famous, returned to a U.S. exchange in January after more than a decade, in a spinoff by Hong Kong-based WH Group 0288.HK.
