Reposted from: www.bloomberg.com/news/trump-eyes-argentina-beef-but-us-price-relief-may-be-limited
President Donald Trump vowed to boost beef imports from Argentina as the US faces soaring meat prices. But any increases may offer little relief to consumers — and risk angering American ranchers.
Trump said on Sunday that buying more meat from Argentina would “bring our beef prices down” while also aiding the struggling South American ally. That’s even as he suggested that an agreement wouldn’t be for a significant amount of shipments, with Argentina currently accounting for only a small share of US beef imports.
“If we buy some beef now — I’m not talking about that much — from Argentina, it would help Argentina, which we consider a very good country, a very good ally,” Trump said on Air Force One. The president signaled last week that his administration had struck an agreement to bring down the price of beef, without specifically mentioning Argentina.
The prospect of a deal with Argentina met with a mixed reaction, with ranchers criticizing the move while the meat industry welcomed the prospect of additional shipments.
“More imports from Argentina will benefit the global packers without helping consumers,” Bill Bullard, chief executive officer of cattle producer group R-CALF USA, said by email. “Excessive imports have displaced domestic production and domestic cattle.”
US beef prices have skyrocketed to record levels, challenging Trump’s promise to make groceries more affordable. Booming imports have fallen short of offsetting a severe domestic cattle shortage. An additional 40% tariff on imported goods from Brazil, the world’s largest beef exporter, is tightening supplies further.
“Tight cattle supply and strong demand for beef have created record cattle prices and high prices for consumers, driven in part by the smallest U.S. cattle herd in more than 70 years,” said Julie Anna Potts, CEO of Meat Institute, which represents the meatpacking industry. “We appreciate the president’s concern and willingness to take action to ensure Americans continue to have access to the most affordable beef in the world.”
Argentina supplies about 2% of US beef imports, well behind countries such as Australia, Brazil, Canada and New Zealand, according to the US Department of Agriculture. Its shipments of about 33,000 metric tons of beef to the US between January and July pales in comparison to Brazil’s 367,000 metric tons over the same period. The bulk of Argentina’s beef exports are sent to China.
The US buys Argentinian beef under a tariff-rate quota of 20,000 metric tons a year, with imports above that threshold facing a 26.4% tariff. It was during Trump’s first term that Argentina was able to rekindle beef exports to the US after a nearly two-decade hiatus.
Trump’s plan comes amid the US’s $20 billion rescue of Argentina, where a collapsing currency is threatening support to libertarian President Javier Milei ahead of midterm elections. The aid has drawn criticism from US farm groups, coinciding with a tariff pause by Milei’s government that spurred a surge in Argentine soybean exports to China — at a time when the Asian nation has banned purchases of US soy.
“President Trump’s plan to buy beef from Argentina is a betrayal of the American rancher,” Christian Lovell, senior director of programs for agricultural watchdog Farm Action, said in an emailed statement. “After crashing the soybean market and gifting Argentina our largest export buyer, he’s now poised to do the same to the cattle market.”
Read the full article on the Bloomberg website.
