President Donald Trump announced Friday that his administration will allow more beef to be temporarily imported into the U.S. without triggering higher tariffs, which drew 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. The U.S. president has also imposed 50% tariffs on Brazil, a major beef exporter.
Trump remains under pressure to cut costs and address affordability issues ahead of November’s midterms. But ranchers, normally some of the president’s biggest supporters, are enjoying some rare profitable years and worry cheap beef imports will reduce cattle prices — and with it, the incentive to increase herd sizes.
“We all want lower grocery prices, but as I’ve said for months, we cannot do it at the expense of American producers,” Sen. Deb Fischer, R-Neb., said in a statement. “Flooding the market with foreign beef hurts our livestock industry and undermines the long-term solution: growing the U.S. cattle herd to meet demand.”
Sen. Tim Sheehy, R-Mont., said in a social media post just hours after Trump’s announcement that the president’s “heart is in the right place,” but importing beef will “harm our ranching families who feed the nation.”
And Sen. Pete Ricketts, R-Neb., said that while he appreciates the administration’s focus on grocery prices, “short term policy shifts do not equal long term solutions.”
The deal, Trump said, 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, which is a tax that goes into effect once a certain quantity of that product enters the country.
The president 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. A White House official said the deal is with foreign beef exporters who have agreed to the discount on beef.
“You don’t put America first by putting U.S. cattle producers last,” U.S. Cattlemen’s Association President Justin Tupper said in a statement. “This move will weaken our markets and gamble with food safety in the process.”
The president’s announcement and other market interventions sacrifice “long-term stability for short term messaging,” Colin Woodall, CEO of the National Cattlemen’s Beef Association, said in a statement.
Glynn Tonsor, a professor at Kansas State University who focuses on the cattle and beef industry, said he would like to see more details about the latest deal but that his immediate assessment was that it wouldn’t have a big effect on prices.
That’s because 300,000 metric tons amounts to roughly 3% of what Americans eat yearly, he said. “The relative magnitude we are talking about is pretty small.”
David Anderson, professor of agricultural economics at Texas A&M University, said he was skeptical other countries could redirect so much beef to the U.S. in such a short time period.
“Is that even achievable?” he questioned in a phone interview.
The White House official, who spoke on condition of anonymity to discuss a plan that has yet to be finalized, 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. The administration made a push last year to buy more beef from Argentina to try to bring down prices.
The president said Friday that his plan would help grow the U.S. cattle supply, which is the smallest it’s been in decades. Some ranchers and experts said the opposite effect was more likely.
“Imports have been a major contributor to the decline in the U.S. cattle inventory,” said Bill Bullard, the CEO of the R-CALF USA, which represents independent cattle producers. “Using more imports today will exacerbate that decline and will prevent herd expansion.”
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Associated Press writers Sarah Raza in Sioux Falls, South Dakota, and Sudhin Thanawala in Atlanta contributed to this report.
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