Trump tariffs are helping drive U.S. beef prices to new highs

President Donald Trump is blaming the meat packers and U.S. cattlemen for rising beef prices, but the tariffs on beef from Brazil, Australia, New Zealand, Uruguay, feed, farm equipment and machinery are all adding to the price surge.

The United States is a big buyer of Australian, Brazilian, and New Zealand beef exports.

Brazil is the second-largest beef-producing country and the largest beef-exporting country in the world.

Brazilian beef exports tracked by Panjiva plummeted in July and August after multiple tariffs resulted in a layered 76.4% total rate being implemented for Brazilian beef. Trump imposed a 50% tariff rate for many Brazilian goods in July. Beef exports have found a new home, being diverted to other markets like China.

Exports of beef from Australia, New Zealand and Uruguay to the U.S. have also decreased as a result of tariffs.

The pullback in exports has reduced supply and is adding to pressures in an already tight U.S. beef supply chain.

“When you impose an extra 50% tariff on a major supplier like Brazil, importers may keep buying and pass costs along, or they may stop buying, but that means less supply to meet the demand,” said Dan Anthony, president of economic research firm Trade Partnership Worldwide. “Either way, you expect prices to go up, especially when imports from Australia, New Zealand, Uruguay, and other key suppliers face new tariffs too,” he added.

The most recent consumer price index report from the Bureau of Labor Statistics for the month of September showed prices for a variety of uncooked beef products rising year over year between 12% and 18%.

The compounding effect of tariffs comes at a time when the U.S. cattle herd is at near a 75-year low, and consumer demand for beef has grown.