Canada halts imports from largest U.S. pork processing facility

Canada has halted imports from the largest pork processing facility in the United States.

Canada halts imports from largest U.S. pork processing facility
Canada has blocked imports from the largest U.S. pork processing facility, operated by Smithfield Foods in Tar Heel, North Carolina, as announced by the company on Friday.

This suspension occurs amid a continuing trade dispute between Washington and Ottawa over tariffs. It represents another challenge for the American agricultural sector, which is facing fears that U.S. tariffs could lead to retaliation from major importers, thereby diminishing the demand for U.S. agricultural goods.

According to the U.S. Department of Agriculture, the suspension aligns with established protocols and is not linked to recent trade developments. Both the agency and Smithfield, the preeminent U.S. pork processor, did not reveal the specific reasons behind Canada's decision.

"Under Canada's policy, three noncompliance issues within six months trigger a temporary suspension," USDA stated.

The ban on shipments from this plant restricts the market for U.S. pork products. The USDA is collaborating with Smithfield to address the concerns and formulate a corrective action plan to be submitted to Canadian authorities.

"Once reviewed and accepted, Canada may consider reinstating the plant's export eligibility," the USDA added.

Canada stopped imports from the facility on Thursday, as noted on a USDA website.

"The issue pertains to a limited number of certain offal shipments," explained Smithfield spokesman Jim Monroe.

On Friday, Smithfield's shares remained nearly unchanged.

U.S. President Donald Trump, on Thursday, exempted goods from Canada and Mexico for one month from the 25 percent tariffs he applied earlier in the week under a North American trade agreement.

Last year, Canada was the fifth-largest export market for U.S. pork, with shipments valued at approximately $850 million, despite a decline in volume, according to U.S. government data. The presence of U.S. pork is substantial in the Canadian retail and foodservice industries, remarked Joe Schuele, spokesman for the U.S. Meat Export Federation, an industry organization.

Aarav Patel for TROIB News