WASHINGTON, July 4 ― US consumers likely paid more for grills to cook their Independence Day hot dogs and burgers this year because of the US-China trade war, but they will find some consolation in less costly meat for cookouts as tariffs curb US exports.

The tit-for-tat tariff fight between the world's two largest economies started by US President Donald Trump a year ago has US companies facing higher costs for metals and components, while US agricultural exports to China have fallen off.

Grill manufacturers such as RH Peterson Co, which owns high-end brands Fire Magic Grills and American Outdoor Grill, said they were struggling with higher prices for raw materials like steel as well as Chinese-made components of their products.

“It's something that has been very harmful for our operations,” said Joe Valencia, purchasing manager at RH Peterson.

Advertisement

While the company absorbed some of the costs, it has raised prices on grills by almost 10 per cent this year ― more than the normal seasonal increase of 1 per cent to 4 per cent each summer, said Jerry Scott, senior vice president of sales.

Fourth of July meats are bountiful in US grocery stores after US farmers increased production and trade disputes limited some exports.

At a Kroger Co-owned Mariano's grocery store in Chicago, customers enjoyed “Buy one, get one free” steak specials and US$3.99 (RM16.50) burgers this week.

Advertisement

“I actually did notice that meat was cheaper this year,” said Donald Denna, a Mariano's customer. “We normally cook chicken on the Fourth of July, but this year I got steak.”

Lean ground beef used in hamburgers costs US$4.52, down from US$4.65 last year, according to the US Department of Agriculture. Boneless New York strip steak costs US$8.64 a pound, down from US$9.75 a year ago.

“Ongoing trade disputes that constrain market access and/or result in elevated tariffs ultimately reduce the volume and value of US meat exports,” said Glynn Tonsor, an agricultural economist at Kansas State University.

Pork spareribs for the grill cost US$2.07 a pound, up slightly from US$2.04 a year ago. Pork prices have increased as an outbreak of a fatal hog disease in China has fuelled expectations for increased US exports by companies such as Tyson Foods Inc despite a 62 per cent tariff on US pork in China.

Could have been worse

US pork exports to China and Hong Kong, the No. 2 buyers of US pork before the trade war, were down 16 per cent this year through April and also fell to top-buyer Mexico as the Trump administration renegotiated the North American Free Trade Agreement, according to the US Meat Export Federation.

Beef exports to China fell 34 per cent to 30,242 metric tonnes. China is not a major buyer of US beef but imposed a 25 per cent retaliatory tariff on imports last year. Large US supplies of beef and pork are keeping a lid on chicken prices too.

The trade war has roiled global markets, with varying consequences for consumers. Futures prices for Midwest hot-rolled coil steel, one type of metal used in grills, have fallen this week to US$525, below record highs from May 2018 when Trump applied broad tariffs on global steel imports but well above their five-year low of US$364 in December 2015.

It could have been worse. The US government recently postponed the introduction of tariffs on US$300 billion worth of products, a list that included all Chinese-made grills, after Trump and Chinese President Xi Jinping met in Japan last month.

Of the grills sold in the United States, 90 per cent are imported and most larger chains such as Home Depot Inc and Lowe's Companies Inc buy their products straight from Chinese suppliers.

Another piece of good news ― fireworks, a July 4 staple, were also included on the list of Chinese products slated to have 25 per cent tariffs levied on them in July. But those tariffs were also postponed. ― Reuters