Canada has halted pork imports from the United States’ largest processing plant, operated by Smithfield Foods in Tar Heel, North Carolina, the company announced Friday. The move comes amid escalating trade friction between the two nations, though Canadian authorities cited compliance issues as the reason for the suspension.

Under Canadian regulations, three noncompliance incidents within six months automatically trigger a temporary import ban. While neither Smithfield nor the U.S. Department of Agriculture (USDA) specified the exact violations, Smithfield spokesperson Jim Monroe noted the issue involved “a limited number of certain offal shipments.” The USDA emphasized the suspension followed standard protocols and was unrelated to recent trade disputes, which have seen Washington and Ottawa exchange tariff threats.

The suspension deals a fresh challenge to the U.S. agricultural sector, already strained by fears that tariffs could provoke retaliatory measures from key trading partners. Canada, the fifth-largest export market for U.S. pork, purchased approximately $850 million worth of American pork products in 2023. Industry experts highlight the significant presence of U.S. pork in Canada’s retail and foodservice sectors.

USDA officials stated they are collaborating with Smithfield to draft a corrective action plan for Canadian review. “Once accepted, Canada may reinstate the plant’s export eligibility,” the agency said. Canada’s import halt took effect Thursday, according to USDA records.

The development follows President Donald Trump’s temporary exemption of Canadian and Mexican goods from steel and aluminum tariffs earlier this week, extending relief under NAFTA negotiations for 30 days. Meanwhile, Smithfield’s shares remained stable Friday, showing little reaction to the news.

Smithfield, owned by Hong Kong-based WH Group, relisted on U.S. stock exchanges in January after a decade-long hiatus. Its brands, including Eckrich and Nathan’s Famous, underscore its prominence in the American meat industry.

As trade uncertainties persist, the suspension underscores the fragile dynamics shaping North American agricultural markets.

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