Trump to temporarily ease US beef tariffs, irking cattle producers

President Donald Trump said on Friday he will temporarily ease beef tariffs to help lower prices, though US cattle producers warned the move would hurt efforts to rebuild herds and economists said it would have little effect on prices.

Trump will sign an executive order within the next two weeks expanding by 300,000 tonnes the amount of ground beef that can enter the US with lower import tariffs, to be in effect for 90 days, aiming to lower prices as US consumers struggle with grocery bills, the White House said.

Trump, in an earlier social media post, said he had “a commitment” that the imported meat would be sold at 25% below current market prices under the plan.

The president did not provide further details, and the White House did not respond to Reuters questions about which countries would supply the beef or discount their export prices.

“This deal will reduce prices for Americans while giving space for our Great American Beef Herd to grow again,” Trump said.

The National Cattlemen’s Beef Association, the largest lobbying group representing US ranchers and cattle feeders, said Trump’s plan would hurt farmers and ranchers and could discourage expansion of the US herd.

“While America’s cattle producers share the goal of keeping groceries affordable for consumers, flooding the market with government-subsidised, below-market beef is not the way to rebuild the American cattle herd,” the association’s CEO, Colin Woodall, said.

US Cattlemen’s Association president Justin Tupper said: “You don’t put America first by putting US cattle producers last. This move will weaken our markets and gamble with food safety.”

Persistently high food prices have become a central issue for voters before the November midterm elections, with Republicans seeking to shield their congressional majorities from public frustration over inflation.

Beef prices have been hovering near record highs, with US cattle inventories at their lowest in 75 years, after ranchers slashed their herds due to a years-long drought that burnt grazing lands and hiked feed costs.

Supplies tightened further after the US suspended imports of Mexican cattle last year amid concerns about the northward spread of a flesh-eating pest that infests livestock.

US meatpackers have also been shuttering processing plants in response to soaring cattle costs.

Cattle futures on the Chicago Mercantile Exchange tumbled to eight-month lows on Friday after the announcement.

Economists and traders questioned whether Trump’s plan would noticeably bring down beef prices, as 300,000 tonnes over 90 days represents a small share of US beef consumption, and some countries have not yet maxed out their tariff-rate quota imports.