This CNBC article covers beef prices in the United States. Donald Trump is blaming the meat packers and U.S. cattlemen for rising beef prices, but the tariffs implemented by the Trump administration are affecting farm equipment and machinery which add to the surge in price. Brazil is the biggest producer and exporter of beef, and since the 50% tariff rate for Brazil, beef exports have been diverted to other markets such as China. Exports from other large beef producing countries such as New Zealand and Australia have also decreased. This pullback in exports does not help the American beef industry, but reduces supply and adds pressures in the already tight US supply chain. These negative effects of tariffs come when the U.S. cattle herd is at a near 75 year low and the consumer demand for beef has grown.
Cattle ranchers in the US have already had difficulties in recent years because of environmental factors such as drought, which diminished the amount of grasslands to feed herds, leading to higher costs of buying feed. Many farmers have faced even more expenses, as some fertilizers facing double-digit tariffs, raising the cost of growing already scarce crops used for animal feed. Many ranchers have expressed their frustration, with one saying that they are in one of the toughest cattle cycles in history.
Link: https://www.cnbc.com/2025/11/13/trump-tariffs-high-beef-prices.html
1 comment:
I read an article in Bloomberg stating that Trump has issued an order to reduce tariffs on beef, tomatoes, coffee, and bananas in order to hopefully lower the cost of groceries. These breaks in tariffs have been put into effect on Nov. 13th, hopefully this will make an impact on these high prices.
Post a Comment