STORY: The U.S.-China trade war means American beef - the star of the menu at this Texas-style smokehouse in Beijing - will soon be off the table.
U.S. beef is an unaffordable option after Beijing's 125% retaliatory tariffs, on top of an existing 22%.
Come May, diners at Home Plate BBQ will be tucking into beef ribs, brisket, and sausages still done in the style of the American South - but mostly sourced from Australia. Operations director Charles de Pellette says the switch to brisket from Down Under is 40% cheaper than continuing to buy American. "Once we deplete our stocks of that, we'll be switching fully over to Australian M5.
We still think that it’s the same taste and quality, and flavor, but we've had to switch just due to market pressures and the tariffs. Stocks are low in China and the prices have doubled." Pork isn't exempt, either - he says their ribs will soon come from Canada.
Even before the trade war began, American beef was expensive, partly because of shortages caused by years of dry weather. Those higher prices were already hard to swallow for consumers in China's weak economy. Local university student Yan says he eats imported beef once every few months because the taste is so good.
So he doesn't mind forking out the extra cost - once in a while - just to experience it. He also says that great flavor isn't exclusive to the U.S.
- and that he's happy to try beef from anywhere. Home Plate BBQ's experience is being repeated across Beijing's restaurants. That's according to a beef supplier based in the capital who spoke anonymously because of the sensitivity of discussing tariffs.
While the $125 million worth of beef the US sends to China every month is a sliver of trade between the two sides its disappearance in China is a glimpse of what's to come for other goods. Tianchen Xu, a senior economist at the Economist Intelligence Unit, says China seems to be lowering its dependence on U.S.
exporters: “I think there's an additional layer, which is (that) China is intentionally hitting the U.S. farming sector, which means that U.
S. farmers will (find it) very difficult to find an exemption from China. So, you know, I think essentially the beef trade will be blocked.
And I mean, Chinese importers or the U.S. exporters need to find some alternative markets.
” He estimates across the board, 80% of U.S.-China trade is being hit by mutual tariffs.
And, he says, that will only deepen the decoupling between China and the U.S. in terms of trade.
.
U.S. beef disappears from Beijing menus as trade war fires up
STORY: The U.S.-China trade war means American beef - the star of the menu at this Texas-style smokehouse in Beijing - will soon be off the table.U.S. beef is an unaffordable option after Beijing's 125% retaliatory tariffs, on top of an existing 22%. Come May, diners at Home Plate BBQ will be tucking into beef ribs, brisket, and sausages still done in the style of the American South - but mostly sourced from Australia.Operations director Charles de Pellette says the switch to brisket from Down Under is 40% cheaper than continuing to buy American."Once we deplete our stocks of that, we'll be switching fully over to Australian M5. We still think that it’s the same taste and quality, and flavor, but we've had to switch just due to market pressures and the tariffs. Stocks are low in China and the prices have doubled." Pork isn't exempt, either - he says their ribs will soon come from Canada.Even before the trade war began, American beef was expensive, partly because of shortages caused by years of dry weather. Those higher prices were already hard to swallow for consumers in China's weak economy.Local university student Yan says he eats imported beef once every few months because the taste is so good. So he doesn't mind forking out the extra cost - once in a while - just to experience it.He also says that great flavor isn't exclusive to the U.S. - and that he's happy to try beef from anywhere.Home Plate BBQ's experience is being repeated across Beijing's restaurants.That's according to a beef supplier based in the capital who spoke anonymously because of the sensitivity of discussing tariffs.While the $125 million worth of beef the US sends to China every month is a sliver of trade between the two sides its disappearance in China is a glimpse of what's to come for other goods.Tianchen Xu, a senior economist at the Economist Intelligence Unit, says China seems to be lowering its dependence on U.S. exporters:“I think there's an additional layer, which is (that) China is intentionally hitting the U.S. farming sector, which means that U.S. farmers will (find it) very difficult to find an exemption from China. So, you know, I think essentially the beef trade will be blocked. And I mean, Chinese importers or the U.S. exporters need to find some alternative markets.”He estimates across the board, 80% of U.S.-China trade is being hit by mutual tariffs.And, he says, that will only deepen the decoupling between China and the U.S. in terms of trade.