Trade Policy Unknowingly Aids and Abets Chinese Threat to American Food Security
Policymakers on both sides of the aisle are rightly focused on the increasingly nefarious influence China has on America’s culture, economy, and security. From Temu to TikTok, Congress and the Biden administration are working to decouple China’s footprint in the United States through a variety policy actions and tools. What should alarm all Americans is the clubfooted approach to trade policy that is allowing the People's Republic of China to create a growing toehold in arguably the most critical of sectors: our domestic food supply.
Nowhere is that more evident than when you go to an American retailer or supermarket and examine the country-of-origin label – displayed in tiny font – at the back of so many popular canned fruits and vegetables. You may be stunned to see “Made in China” or “Product of China.” Unlike a harmless Internet meme, cheap dress, or plastic trinket, increasing imports of Chinese canned food should be viewed as the start of a potential tsunami from across the Pacific that could destroy our farmers and food producers that make the everyday American brands we have grown to rely on to feed our families.
The indiscriminate imposition of Section 232 tariffs on a wide variety of steel products created consequences far from what was envisioned. For the canned food producers who fill the 20 billion steel cans made in the U.S. annually, these “national security” tariffs are a canard that artificially inflated their products. “National security” tariffs have in effect created food insecurity since imported foods come in tariff free. Our government has opened the door to cheaper canned corn, peas, peaches, and tomatoes from Brazil, Egypt, and, of course, China.
Over the last few years China has emerged as one of the most prominent suppliers of canned food imports to the United States. According to the China Canned Food Industry Association, Chinese canned food imports to the United States rose 19% over last year, reaching record value and volume levels. And that figure is expected to grow exponentially in the coming years, especially if other proposed U.S. government import duties on steel are imposed. These import duties increase the costs to produce steel used to make canned foods, which ultimately increases American made canned foods.
The rise of Chinese canned food imports is presenting multi-level challenges for American farmers, canned food producers and steel can makers. With the increased availability of low-cost Chinese products in our market, displacing American-made canned produce on supermarket shelves, they are quickly filling our cupboards, fridges, and pantries. Even some American school systems are buying cheaper canned foods from our strategic competitor, China.
The long-standing tradition of agricultural self-sufficiency that the nation has prided itself on now faces a government-created threat that has the potential to bury our farmers. The Trump-Biden tariff regime on American can manufacturers and food companies have placed tremendous pressure on their businesses. Many are unable to compete with the lower production costs and pricing strategies employed by their Chinese competitors. This has led to layoffs, plant closures, and an erosion of the domestic packaged food supply.
It is imperative, then, that we maintain a diverse, robust, and resilient domestic food production system – from farm to fork – to ensure the security and stability of our nation's food supply. At a minimum, policymakers in Washington, DC, must end any dependence we have on our economic, political, and military rival – China – by taking decisive action.
Washington policymakers must immediately develop and implement a comprehensive food security strategy. This plan should focus on strengthening our self-reliance. Part and parcel to this is reexamining our trade rules, be it tariffs on food produced and packaged by our strategic competitors, more prominent country-of-origin labeling, or other trade incentivizes or protections. The Biden administration and Congress must now act decisively to establish and maintain a resilient, robust, and secure domestic food supply system while we still can.
Robert Budway is the president of the Can Manufacturers Institute (CMI), the national trade association representing the can manufacturing industry and its suppliers.
