President Donald Trump’s administration will allow more beef to be temporarily imported into the U.S. without triggering higher tariffs, drawing swift pushback from cattle producers and conservative rural-state Republicans.
Beef prices have climbed to record highs amid a drop in the number of U.S. cattle, consistent consumer demand, and limits on cattle from Mexico, where the animals are facing a flesh-eating pest.
Sen. Deb Fischer, R-Neb., said in a statement, “We all want lower grocery prices, but as I’ve said for months, we cannot do it at the expense of American producers.”
Sen. Tim Sheehy, R-Mont., expressed concerns that importing beef will harm ranching families who feed the nation, despite acknowledging that the president’s heart is in the right place.
They appreciate the administration’s focus on grocery prices, but short term policy shifts do not equal long term solutions, according to Sen. Pete Ricketts, R-Neb.
The deal allows up to 300,000 metric tons of ground beef to be imported into the U.S. for the next 90 days without activating an “out of quota” tariff.
President Trump said on social media that he had committed to ensuring the imported beef would be sold at 25% below current market rates, making it cheaper for American consumers through a video announcement.
A White House official said the deal is with foreign beef exporters who have agreed to the discount on beef.
U.S. Cattlemen’s Association President Justin Tupper said in a statement, “You don’t put America first by putting U.S. cattle producers last.”
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Colin Woodall, CEO of the National Cattlemen’s Beef Association, said the president’s announcement and other market interventions sacrifice long-term stability for short term messaging.
Glynn Tonsor, a professor at Kansas State University, would like to see more details about the latest deal but believes it wouldn’t have a big effect on prices.
David Anderson, professor of agricultural economics at Texas A&M University, is skeptical other countries could redirect so much beef to the U.S. in such a short time period.
Some experts believe that imports have been a major contributor to the decline in the U.S. cattle inventory.
Using more imports today will exacerbate that decline and will prevent herd expansion, according to Bill Bullard, the CEO of the R-CALF USA.
The administration made a push last year to buy more beef from Argentina to try to bring down prices.
The White House official, who spoke on condition of anonymity, said the beef in question is lean beef trimmings that are used for ground beef production.
Trump plans to sign an executive order formalizing the directive within two weeks, the official said.
It will be important to monitor the impact of the deal on the U.S. cattle industry and the prices of beef for American consumers.
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