By Tom Polansek
CHICAGO (Reuters) -Canada has blocked imports from the biggest U.S. pork processing plant, a facility run by Smithfield Foods in Tar Heel, North Carolina, the company said on Friday.
The suspension comes as Washington and Ottawa have engaged in a heated dispute over trade tariffs.
It is the latest blow for America’s farm sector, which has been roiled by concerns that U.S. tariffs will spark retaliation from top importers that reduces demand for American agricultural products.
Smithfield, the largest U.S. pork processor, is working with the U.S. Department of Agriculture to resolve the matter, company spokesman Jim Monroe said. Shares were nearly flat.
“The issue pertains to a limited number of certain offal shipments,” Monroe said, without elaborating on the issue.
Canada halted imports from Smithfield’s facility starting on Thursday, according to a USDA website. The agency had no immediate comment.
U.S. President Donald Trump on Thursday exempted goods from Canada and Mexico under a North American trade pact for a month from the 25% tariffs that he had imposed earlier this week.
Canada was the fifth largest export market for U.S. pork last year, according to U.S. government data. Though shipments slipped slightly, they were still valued at about $850 million.
U.S. pork has a significant presence in the Canadian retail and foodservice sectors, said Joe Schuele, spokesman for the U.S. Meat Export Federation, an industry group.
Smithfield, whose brands include Eckrich and Nathan’s Famous, returned to a U.S. exchange last month after more than a decade, in a spinoff by Hong Kong-based WH Group.
(Reporting by Tom Polansek; Editing by Chizu Nomiyama and David Evans)