President Donald Trump says the United States will waive out-of-quota tariffs on up to 300,000 metric tons of imported beef for 90 days. He claims the step will make ground beef 25 percent cheaper for American consumers.
DR reports in its weekly business roundup Millioner Milliarder that Trump announced the plan on his own platform, Truth Social, on Friday. The president wants the import duty removed on 300,000 tons of foreign beef over the next 90 days.
According to DR, Trump wrote that he had secured a commitment that the price would fall by 25 percent. As reported by UPI via Yahoo Finance, he said he had concluded a deal to lower ground beef prices for working American families, with imported beef sold below current market levels.
CBS News explains that the waiver pauses the higher tariff charges that apply once imports pass certain quotas. The outlet frames the decision as an attempt to bring down what it calls historically high beef costs in the United States.
Reuters reports that the White House plans for Trump to sign an executive order within the next two weeks. That order would formalize the temporary expansion of the tariff-rate quota. Al Jazeera cites a White House official giving the same two-week timeline.
On price levels, DR points to figures from The Washington Post. The newspaper reports that a pound of ground beef cost an average of $6.89 last month, roughly 44 kroner for 0.45 kilo. That is nearly double the level of 10 years ago, and beef now costs more than bacon for the first time.
The announcement has drawn criticism from American producers. DR notes that U.S. cattle ranchers are not pleased about cheaper foreign beef in the refrigerated aisle. The Financial Times reports that some ranchers have called the plan a betrayal, fearing imported beef will undercut them.
Reuters adds that cattle producers warn the move will hamper efforts to rebuild herds. The same outlet reports that economists and traders consider 300,000 tons over 90 days too small a share of U.S. consumption to move prices much. Reuters also notes that some countries have not filled their existing quota allocations.
DTN Progressive Farmer reports that Trump gave no details on how the promised 25 percent reduction would be implemented. It remains unclear which part of the supply chain would absorb the cost. Trump also wrote that the deal would give the American beef herd space to grow again.
DR explains that supply is the underlying issue, with strong demand for beef and a shrinking U.S. cattle population over several years. DR also notes that the announcement comes as the U.S. midterm elections approach. The Financial Times places ranchers’ anger in the context of that same run-up to the midterms.
