President Trump announced plans to lift tariffs on beef imports for 90 days as he attempts to crack down on soaring grocery bills.
In a Friday morning Truth Social post, Trump said he would allow up to 300,000 metric tons of ground beef to come into the country tariff-free – blaming former President Biden for the US’ shrinking herd levels, which have fallen to a 75-year low.
The president vowed that he has a “commitment” to sell beef at 25% below current market prices, buying time for American ranchers to rebuild their herds.
The current tariff quotas on beef, which existed prior to the Trump administration, place a tax of 4.4 cents per kilogram on a limited number of imports for each country.
Anything above that specific quota faces a steep 26.4% tariff, according to the US Department of Agriculture.
A White House official told The Post that Trump will sign an executive order suspending the out-of-quota tariffs within the next two weeks.
The Department of Agriculture said Trump’s order shows his “commitment to lowering the cost of everyday goods” while “cutting regulations for our farmers and ranchers and rebuilding our nation’s cattle supply.”
The spokespeople did not address questions about which countries may supply the additional beef imports, and whether the imports will still face the baseline 4.4-cent tax.
The Trump administration has been eager to crack down on stubborn food inflation ahead of November’s midterms, and beef and veal products have been among the hardest-hit items.
In July, ground beef cost $6.89 a pound – a 10% jump from the previous year and 57% higher over the past five years, according to the Federal Reserve Bank of St. Louis.
Roast beef prices are 13.5% higher over the past year and steaks cost 9.6% more, according to data from the Bureau of Labor Statistics.
Trump’s efforts to ramp up imports have faced heated blowback from American ranchers and cattle groups, which argue they are already struggling to stay afloat amid tariffs and higher fuel prices, as many farmers use diesel for their machinery.
The president said last year that he had lowered tariffs on beef imports. In February, he signed an executive order to boost imports from Argentina by 80,000 metric tons.
Trump also pushed the Department of Justice to launch an antitrust probe into the nation’s largest meatpackers and announced plans to provide a $500 million lifeline for smaller meatpacking firms.
But it takes about two years for ranchers to rebuild their herds – and it’s unclear whether these cattle farms want to spend the time and money it takes to ramp up their operations to past years’ levels.
At the start of this year, the US recorded about 86.2 million cattle and calves – its smallest herd since the 1950s, according to the Department of Agriculture.
Meatpackers like Tyson and JBS have floundered amid the severe shortages. Last week, Tyson announced it is shutting down a major beef processing plant in Illinois – its second closure so far this year.
In 2024, drought levels hit a nationwide record, critically impacting regions across the southwest and Northern Plans, according to government data.
Abnormally dry conditions reduced the amount of grass available for grazing, making farmers more reliant on pricey feed.
Further hampering supply was an outbreak of a flesh-eating parasite known as the New World Screwworm in Mexican cattle herds, which forced the US to pause imports in November 2024.
Demand for beef, however, has remained strong. Americans are expected to consume about 29 billion pounds of beef this year, according to government data.
As steady demand and low supply sent cattle valuations higher, ranchers were tempted to sell more of their animals into slaughter plants than usual – meaning they kept fewer to breed, worsening shortage conditions.
Last month, the Department of Agriculture announced it would reopen ports along the southern border to Mexican cattle.
Prior to the temporary ban, Mexico was sending about 1 million cattle to the US each year.
Credit: Source link
