Former President Donald Trump announced Friday he intends to lift tariffs on 300,000 metric tons of ground beef for 90 days, a move he stated is intended to combat rising grocery prices. Trump also committed to a 25% reduction in ground beef prices.
In a post on Truth Social, Trump blamed the Biden administration for a decline in U.S. herd sizes, which he noted have reached a 75-year low. A White House official indicated that an executive order suspending these out-of-quota tariffs is expected within the next two weeks.
The Department of Agriculture stated that Trump's action demonstrates a commitment to reducing the cost of everyday goods, while also cutting regulations for farmers and ranchers and aiding in the rebuilding of the nation's cattle supply.
Details regarding which countries will supply the additional beef imports, and whether a baseline tariff of 4.4 cents per kilogram will still apply, were not immediately available. Prior to the Trump administration, existing tariff quotas on beef allowed a limited amount of imports per country at a low rate, with any amount exceeding the quota facing a 26.4% tariff, according to the USDA.
This initiative comes as the Trump campaign seeks to address food inflation, with beef and veal prices being particularly affected. In July, the cost of ground beef was $6.89 per pound, marking a 10% increase from the previous year and a 57% rise over the past five years, according to data from the Federal Reserve Bank of St. Louis. Bureau of Labor Statistics data showed roast beef prices increased by 13.5% year-over-year, and steak prices rose by 9.6%.
American ranchers and cattle groups have voiced opposition to increased imports, citing their own struggles with tariffs and rising fuel costs. The Trump administration has previously taken steps to address beef prices and supply, including lowering tariffs on beef imports and signing an executive order to increase imports from Argentina. Trump also previously initiated an antitrust probe into major meatpackers and proposed a $500 million aid package for smaller meatpacking firms.
Rebuilding cattle herds typically takes about two years, and it remains uncertain if farmers will invest the time and resources to significantly increase operations. As of the start of the year, the U.S. cattle inventory was approximately 86.2 million, the smallest since the 1950s, according to the Department of Agriculture.
Factors contributing to the reduced supply include widespread drought conditions in 2024, which limited grazing land and increased reliance on costly feed. Additionally, an outbreak of the New World Screwworm parasite in Mexican cattle herds led the U.S. to temporarily pause imports in November 2024. Despite supply issues, demand for beef has remained strong, with Americans projected to consume around 29 billion pounds this year.
The sustained demand and low supply have driven up cattle prices, incentivizing ranchers to sell more animals for slaughter rather than for breeding, which has further exacerbated shortages. In an effort to increase supply, the Department of Agriculture recently reopened southern border ports for cattle imports from Mexico, a country that previously supplied about 1 million cattle annually to the U.S. prior to the screwworm-related ban.