Trump eases beef tariffs to cut US prices

Washington: US President Donald Trump has temporarily expanded low-tariff imports of lean beef trimmings by 300,000 metric tonnes, seeking to increase ground beef supplies and ease prices for American consumers amid a shrinking domestic herd.

The additional imports will enter the United States under the lower, in-quota tariff rate for 90 days beginning September 1. The quota will be divided into three tranches of 100,000 metric tonnes each and allocated on a first-come, first-served basis.

The first tranche will run from September 1 through September 30. The second will open on October 1 and close on October 30. The final tranche will begin on October 31 and remain available until the quota is filled or November 30, whichever comes first.

The measure applies only to lean beef trimmings used with American beef to produce ground beef. It does not alter commitments covering countries that have free trade agreements with the United States or those possessing country-specific beef quotas, according to a White House fact sheet released on Wednesday (local time).

Trump said domestic supplies would not be sufficient to meet demand at reasonable prices because of natural disasters, disease and major market disruptions.

“As President of the United States, I have a responsibility to ensure that hard-working Americans can afford to feed themselves and their families,” Trump said in the proclamation.

The administration said the temporary quota could increase the projected US beef supply by about 10 per cent. It argued that the imports would compete primarily with the market for cull cows and would not significantly affect the fed cattle market.

The Agriculture Secretary and the US Trade Representative have been directed to monitor whether beef entering under the expanded quota is sold at 25 per cent below the prevailing market price for lean beef trimmings.

“If the action taken in this proclamation does not result in a lower sale price of imported ground beef, I may end the action taken in this proclamation in order to, among other things, prevent a windfall to foreign producers,” Trump said.

The White House cited restrictions on live cattle imports from Mexico, imposed to prevent the spread of the New World Screwworm, as one of the factors reducing US beef production. It also pointed to drought, wildfires and lower availability of feed and forage across cattle-producing regions.

The closure of southern ports to Mexican livestock resulted in the loss of hundreds of thousands of metric tonnes of beef that otherwise would have been produced in the United States, the administration said. Some ports remain closed as officials pursue a phased reopening with safeguards against the pest.

The US Department of Agriculture expects domestic beef output to decline by about 4 per cent from 2025 levels. The administration said the American cattle herd had fallen to its lowest level in 75 years, although department data indicated that herd numbers entered the early stages of growth in July.

The White House blamed policies and inflation under the Biden administration for imposing high input costs on farmers. It said ranchers were now retaining heifers at higher rates and that the total number of US cattle was increasing for the first time since 2018.

Trump previously expanded the 2026 quota for lean beef trimmings from Argentina by 80,000 metric tonnes in February. Wednesday’s proclamation leaves that allocation unchanged and assigns the new 300,000-metric-tonne quota to other eligible countries and areas.

The action was taken under the Uruguay Round Agreements Act, which permits a president to temporarily increase the quantity of an agricultural product eligible for an in-quota tariff when domestic supplies are inadequate because of a natural disaster, disease or major national market disruption. The United States is the world’s largest beef consumer by volume and ranks second in per-capita consumption.

IANS