In an effort to tackle rising beef prices, President Trump is set to sign two executive orders, a White House official revealed to The Post. This move is part of his strategy to make beef more affordable amidst escalating steak costs and growing inflation concerns as the midterm elections approach.
The forthcoming directives aim to boost beef imports and rejuvenate the US cattle herd, which has dwindled to its lowest in 75 years due to severe droughts and escalating production expenses.
The first executive order seeks to temporarily lift the tariff-rate quota on beef imports. This quota currently imposes higher tariffs once a certain quantity of beef enters the US. By suspending this, more beef can be imported at reduced costs, as reported by the Wall Street Journal.
The second order will instruct the Small Business Administration to expand loan opportunities and capital access for American cattle ranchers. It also plans to ease endangered species protections affecting gray and Mexican wolves, which have been a point of contention for major beef producers. Additionally, the order will relax certain requirements for ranchers, such as the mandatory use of electronic ear tags on livestock.
Shoppers have already noticed some relief in grocery prices. For example, egg prices have decreased as poultry populations have rebounded following widespread avian flu outbreaks.
But beef prices are still sky-high – up 40% over the past five years.
Extremely dry conditions have reduced the amount of grass available for grazing, making farmers more reliant on feed and raising their costs.
Further hampering supply was a flesh-eating pest called the New World Screwworm discovered in Mexican cattle herds, forcing the US to temporarily halt imports.
Demand for beef and veal products has remained steady, pushing prices artificially high – making it beef major driver of food inflation under the Trump administration.
However, Trump’s efforts to curb beef prices could further anger cattle ranchers, who were already upset after the government quadrupled beef imports from Argentina in February.
At the time, the National Cattlemen’s Beef Association said the additional Argentinian imports would damage the “livelihoods of American cattlemen and women.”
American ranchers and farmers have since sounded the alarm over the Iran war, as the Strait of Hormuz blockade disrupts global shipments of fertilizer – sending their input costs even higher.
The US is poised to import a record amount of beef this year, largely from Brazil, Australia and Canada, according to the US Department of Agriculture.
Brazil – the world’s largest beef exporter – has been shipping more beef to the US since China, its usual top buyer, has imposed stricter import quotas.
The Trump administration has largely blamed meatpackers, particularly foreign-owned companies, for jacking up prices on American customers.
The Department of Justice last week confirmed it has launched an antitrust investigation into the “Big Four” meatpackers, which control more than 85% of the US processing market.
Trump has been keen on affordability initiatives ahead of the midterm elections, as consumer sentiment in May plunged to a fresh record low on inflation concerns amid the Iran war.
The president has exempted several food items from his tariffs, delayed planned increases on lumber and furniture imports, and seemingly dropped his threat to hike the baseline tariff on all imports from 10% to 15%.