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US beef industry is expected to be affected due to China-US trade disputes. China's list targets US farmers, who form a significant portion of Trump's electoral base. Han Peng reports.
The US beef industry caught in the crossfire of the escalating trade tensions. China's retaliatory tariffs took effect on Friday. This restaurant owner says total taxes on US beef rose from just over 20 percent to a staggering 52 percent.
ZHU XIAOJUN, OWNER PC WOK STEAKHOUSE "Most of our suppliers have stopped importing beef from the US. For any that's still being sold in the market, the prices have become ridiculously high."
Zhu's restaurant is located in downtown Shanghai. It sells steaks from the US and Australia. The origin of the restaurant's food is on its menu.
HAN PENG SHANGHAI "This may well be my last time in a long period of time to eat the US beef in China. But even after the price hike, customers are still facing a wide range of choices. Perhaps next time, I'll come back to the same restaurant and try the steak made by beef from Australia."
Xu Wei is one of Zhu's suppliers. His company is the largest food importer in Shanghai. Last July, China lifted a ban on US beef imports, and Xu's firm was one of the first to act.
XU WEI, GENERAL MANAGER SHANGHAI NEW SOURCE INT'L TRADING COMPANY "Now we have sharply reduced our imports of US beef and other agricultural products like pork. We've started to import from Europe instead."
In his warehouse, the remaining US beef and pork can still be found. But Xu says he's put his business with US partners on hold.
HAN PENG SHANGHAI "Most of the pork imported from the US are not really the main parts of the big, but rather, they are something like this, a pig face or pig feet. They are what foreigners do not consume in their day-to-day lives, but here in China, they are extremely popular in the Chinese cuisine. However, if the Chinese people stop buying them, few other countries would become huge market for them."
The effects of Trump's trade policies go far beyond China's dinner tables. Other industries would be wise to prepare. Han Peng, CGTN, Shanghai.