China cuts dairy imports by up to 16.5% in early 2026

A report from Argentina's Observatorio de la Cadena Láctea Argentina warns that China, the world's top dairy buyer, has reduced import volumes by up to 16.5% at the start of 2026. Prices in dollars are cushioning the decline while domestic production rises.

Argentina's Observatorio de la Cadena Láctea Argentina issued a report highlighting China's slowdown in dairy imports during early 2026. The document states that volumes purchased by the world's leading dairy buyer have dropped by up to 16.5%. This reduction marks a notable brake on acquisitions from international suppliers. However, prices in U.S. dollars have softened the financial impact of the decline. At the same time, China's domestic production is advancing, potentially contributing to lower import needs. The report underscores China's pivotal role in the global dairy trade, particularly for Argentine exporters, though it provides no specific figures on shipments from Argentina. This development occurs amid ongoing dynamics in the international milk and dairy products market.

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Argentine and US officials shake hands sealing trade deal expanding beef exports to 100,000 tons.
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Argentina signs trade agreement with the United States

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Foreign Minister Pablo Quirno announced a trade agreement between Argentina and the United States that expands the beef export quota to 100,000 tons and removes tariff barriers in key sectors. The deal aims to strengthen bilateral economic ties and could boost exports by up to $1,013 million. The agricultural sector, particularly meat exporters, hailed the pact as a major step forward.

The People's Republic of China announced safeguard measures for beef imports starting January 1, 2026, with country-specific quotas and 55% tariffs on excess volumes. These will affect Argentina, with limits of 511,000 tons in 2026, 521,000 in 2027, and 532,000 in 2028. Experts estimate the initial impact will be limited but could encourage market diversification.

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Building on China's safeguard measures announced January 1, 2026, which impose country-specific beef import quotas through 2028 with 55% tariffs on excess volumes (12.5% within limits), Argentina receives 511,000 tons—exceeding 2025 exports by about 100,000 tons—positioning it and Uruguay as key beneficiaries compared to Brazil and Australia. This eases concerns in Argentina's cattle sector, supporting growth without severe restrictions, though capping major expansions.

Bilateral trade between Chile and China reached $61.66 billion in 2024, an 8.6-fold increase from 2006. Chilean cherries have emerged as a key symbol of this partnership, with exports nearing $3.3 billion in the 2024/25 season. Industry leaders remain optimistic despite a slight volume decline.

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Argentina is projected to achieve a record in exports by 2026, surpassing $90 billion, driven by agriculture, energy, and mining sectors. This progress would provide relief to the Economy Ministry and Central Bank, which aim to boost reserves. The key challenge is sustaining competitiveness and accessing markets in a more restrictive global environment.

Chinese customs authorities have intensified inspections on imported Japanese sake and food products, causing delays in clearance procedures. Trade sources indicate the measures began in November following Prime Minister Sanae Takaichi's remarks on a potential Taiwan contingency, appearing as an effort to heighten economic coercion against Japan. Japanese sake exports to China reached ¥11.67 billion in 2024, the highest by any country or region.

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China warned Mexico on March 26, 2026, of potential trade reprisals following tariffs imposed in December 2025 on over 1,400 categories of Asian goods, primarily Chinese. The move risks complicating Mexico's USMCA renewal talks with the US. Economy Secretary Marcelo Ebrard dismissed Beijing's complaints, accusing Chinese firms of state-backed dumping.

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