Canada has suspended imports from the largest U.S. pork processing plant, operated by Smithfield Foods in Tar Heel, North Carolina, the company confirmed on Friday. The move comes amid escalating trade tensions between the U.S. and Canada, though officials insist the suspension is unrelated to recent tariff disputes.
The U.S. Department of Agriculture (USDA) stated that the action aligns with standard protocols, triggered by three noncompliance issues within six months. Neither the USDA nor Smithfield specified the exact reasons for the suspension, but Smithfield noted it involved a limited number of offal shipments. The USDA is collaborating with Smithfield to develop a corrective action plan to address the issues and restore the plant’s export eligibility.
Canada halted imports from the facility on Thursday, according to a USDA website. The suspension deals another blow to the U.S. agricultural sector, which is already grappling with fears of retaliatory tariffs from key trading partners. Canada was the fifth-largest export market for U.S. pork in 2023, with shipments valued at approximately $850 million.
Smithfield, the largest U.S. pork processor and owner of brands like Eckrich and Nathan’s Famous, saw its shares remain nearly flat on Friday following the announcement. The company recently returned to the U.S. stock market in January after a spinoff by its parent company, Hong Kong-based WH Group.
The suspension comes as U.S. President Donald Trump temporarily exempted Canadian and Mexican goods from 25% tariffs imposed earlier this week, providing a one-month reprieve under the North American trade pact. Despite this, trade tensions remain high, with both countries locked in disputes over tariffs and market access.
Joe Schuele, spokesman for the U.S. Meat Export Federation, emphasized the significant presence of U.S. pork in Canada’s retail and foodservice sectors, underscoring the importance of resolving the issue swiftly to minimize economic impact.