Latest News

Trump signs orders to increase beef imports and grow herds in order to reduce record prices

Donald Trump, the president of the United States, is expected to sign an executive order on Monday to increase beef imports to the U.S. White House officials said that they would support the renewal of U.S. cattle herds in an effort to reduce beef prices.

The official didn't provide any details about the two executive orders. They come at a moment when the U.S. herd is at its lowest point in 75 years, and beef prices are continuing to rise.

The Wall Street Journal had reported earlier that Trump would suspend tariff-rate limits on beef. This would allow for more meat to be imported into the U.S. with lower tariffs. The 'newspaper' reported that Trump would instruct the Small Business Administration (SBA) to increase lending to ranchers, and reduce protections for gray and Mexican wolves - which prey on livestock.

After Trump's meeting with Brazilian President Lula da Silva, U.S. cattle prices were impacted by expectations of increased beef imports. The Chicago Mercantile Exchange's June live cattle futures recovered from early losses and ended slightly higher on Monday. August feeder cattle fell 0.5%.

While prices of eggs, milk and other grocery staples are down since Trump took office in January 2025 the price of beef continues to rise, a sign that inflation is still a problem for American consumers, as summer grilling season begins.

Trump ordered in October last year a 'quadrupling' of beef imports to Argentina and removed his 40% punitive duty on Brazilian coffee and beef a month after.

According to the Consumer Price Index of the Labor Department, beef prices were up 12.1% in April. Beef prices are more than 16 percent higher than they were when Trump took office in January 2025.

HAMBURGER HELPER

U.S. cattle numbers have dropped to their lowest level in 75 years after ranchers reduced their herds due to a drought that destroyed grazing land and increased feeding costs. High cattle prices have encouraged ranchers not to keep their livestock for breeding, but to sell them to be slaughtered.

The U.S. Department of Agriculture projects that the country will be importing a record 5,8 billion pounds of meat this year. This is up about 6% compared to 2025, and 25% compared to 2024.

David Anderson, an agricultural economist at Texas A&M University, explained that most imports are lean trimmings of beef which are then mixed with U.S. beef supplies to make ground beef. He said that more imports would help hamburger restaurants cut their costs. However, he didn't expect consumer prices to drop significantly.

"We already imported a record-breaking amount. What is the additional amount to what we already import? Anderson said. "I find it hard to believe that this will have a major impact on prices." It's hard to imagine this being a massive influx of supplies.

Bill Bullard of the cattle producers' group R-CALF USA said that increased imports could also?discourage American ranchers from increasing their herds. He said that smaller cattle feeders may 'even leave the industry' if prices fall far enough.

Bullard stated that consumers may not benefit as ranchers are under pressure.

"We have had record beef imports in the last three years, and yet consumers are still paying record prices," he said. David Lawder, Tom Polansek and David Lawder edited the article. Mark Porter and David Gregorio reported.

(source: Reuters)