Trump commercial policy cheapens meat: Price grids, but cheaper meat: how the Trump's commercial policy plays on July 4

American consumers have probably paid more for grills to cook hot barks and burgers on this year's Independence Day because of the US-China trade war, but they will find some consolation in less expensive meat as tariffs reduce US exports

The fight for the tit-for-tat fare between the two major economies of the world, launched by US President Donald Trump a year ago, makes US companies to face higher costs for metals and components, while Chinese agricultural exports to China have fallen.

Grid makers such as RH Peterson Co., which owns high-end brands, Magic Grills and American Outdoor Grill, said they are struggling with higher prices for raw materials such as steel as well as Chinese-made components.

"It's something that has been very damaging to our operations," said Joe Valencia, Purchasing Manager at RH Peterson.

While the company has absorbed some of the costs, barbecue prices have risen by nearly 10% this year - more than a normal seasonal increase of 1% to 4% each summer, said Jerry Scott, senior vice president of sales.

The fourth quarter of meat is bountiful in US grocery stores, after US farmers increased production, and commercial litigations have limited exports.

At a grocery store of Mariano, co-owner of Mariano's Chicago store, customers received this week's "Buy One, Get a Free Gift" and burgers of $ 3.99.

"We noticed that meat was cheaper this year," said Donald Denna, Mariano's customer. "Normally cook chicken on July 4, but this year I have steak."

The soft beef used in hamburger costs $ 4.52, down from $ 4.65 last year, according to the US Department of Agriculture. New York's roast candy costs 8.64 pounds, down from $ 9.75 a year ago.

"Current trade disputes, restricting market access and / or increasing tariffs, ultimately reduce the volume and value of U.S. meat exports," said Glynn Tonsor, economist at Kansas State University.

Pork grill costs $ 2.07 per kilogram, slightly increasing from $ 2.04 a year ago. Pork prices have risen as a result of an epidemic of fatal swine fever in China, which has led to a rise in US exports by companies such as Tyson Foods Inc., despite a 62% pork price in China.

Trump commercial policy cheapens meat

It might be bad

Exports of US pork to China and Hong Kong, the number 2 US pork buyers before the trade war, fell 16% this year to April and also fell to the first buyers in Mexico , as the Trump administration has renegotiated the North Free Trade Agreement under the US meat export federation.

Beef exports to China have fallen by 34% to 30,242 tonnes. China is not a major beef buyer in the US but has imposed a 25% rebate on imports last year. Large quantities of beef and pork in the U.S. keep a cap on chicken prices.

Commercial war has shaken global markets, with different consequences for consumers. Market prices for Midwest steel, a type of metal used in barbecues, dropped this week to $ 525, below the record highs of May 2018, when Trump applied broad steel import tariffs, $ 364 in December 2015. It could have been worse. The US government has recently postponed the introduction of $ 300 billion in product tariffs, a list that includes all grids produced by the Chinese after Trump and Chinese President Xi Jinping met in Japan last month. Of the grids sold in the United States, 90% are imported, and the largest chains, such as Home Depot Inc. and Lowe's Companies Inc., buy their products directly from Chinese suppliers.

Another piece of good news - fireworks, a base of July 4, were also included on the list of Chinese paid products to have the 25% tariffs charged for them in July. But these rates have also been postponed.