President Trump’s plan to import red
meat runs counter to his philosophy of increasing domestic production, and has
angered cattle ranchers in the United States.
With U.S. beef prices up 15% this
year to nearly $7 per
pound, President Donald
Trump is considering importing
beef from Argentina to boost supplies and curb inflation — a
move that contradicts his usual “America
First” protectionist stance.
Trump’s proposal
follows drought-driven herd reductions and tariffs that have disrupted beef
imports from countries like Brazil. The plan could form part of a broader trade pact with Argentina,
whose president Javier
Milei has become a close Trump ally.
However, U.S. cattle ranchers and Republican
lawmakers have slammed the idea as a blow to domestic
producers. Industry leaders warn that cheaper Argentine beef could undercut
U.S. ranchers, threaten livestock safety, and distort markets.
While Trump argues that
imports could ease consumer prices, critics say it betrays his promise to
strengthen U.S. agriculture — underscoring the tension between his tariff-heavy economic agenda
and efforts to control
inflation.
With
beef prices soaring, President Trump is considering an idea that is at odds
with his usual mantra that nearly everything should be made in the United
States.
Mr.
Trump, who has imposed tariffs on nearly everything that America imports, said
that he was considering buying beef from Argentina to bolster supplies and curb
rising prices. The idea contradicts Mr. Trump’s guiding economic philosophy of
erecting import barriers to encourage domestic production. It also suggests
that the president believes that in some cases, open markets can be an antidote
to rising prices.
“We
would buy some beef from Argentina,” Mr. Trump said to reporters aboard Air
Force One on Sunday. “If we do that, that would bring our beef prices down.”
Ground
beef prices in the United States have increased by about 15 percent this year,
to a record high of nearly $7 per pound. The spike in prices stems from several
factors, including hotter weather and the tariffs that Mr. Trump has imposed on
key trading partners.
Droughts
across parts of the country have forced ranchers to shrink their cattle herds,
causing beef prices to increase along with demand for red meat. And beef
imports from some countries such as Brazil have started to fall because of
steep tariffs on their exports to the United States.
So
Mr. Trump is turning to Argentina, the struggling Latin American ally that he
has been showering with economic support. The administration is providing
Argentina with a $20 billion lifeline that was formalized on Monday, and has
been buying pesos to shore up that country’s currency. During a visit to the
White House by President Javier Milei of Argentina, Mr. Trump said the United
States could consider striking a free-trade agreement with Argentina.
It
now appears that beef could be on the table as part of such a pact.
While
Americans who eat meat might praise such a move to lower the cost of their
burgers, the notion of buying more beef from Argentina is already causing
backlash in rural America, and discomfort among some Republicans.
“This
is not America first!” Representative Thomas Massie, a Kentucky Republican who
has frequently clashed with Mr. Trump, said on social media. “We don’t need the
U.S. flooded with beef from Argentina after our cattle ranchers have taken a
beating over the last several years.”
Cattle
ranchers in the United States believe that beef is priced fairly here and that
the Trump administration should not be suppressing prices with imports that
they view as low-quality.
“This
plan only creates chaos at a critical time of the year for American cattle
producers, while doing nothing to lower grocery store prices,” said Colin
Woodall, chief executive of the National Cattlemen’s Beef Association.
Mr.
Woodall added that the U.S. trade relationship with Argentina was unbalanced
when it came to beef, noting that the United States exported about $7 million
of beef to Argentina over the last five years but imported $801 million worth.
He also raised safety concerns, pointing to the history of foot-and-mouth
disease in Argentina that can threaten livestock.
Argentina
accounts for about 2 percent of U.S. beef imports. They are limited by a tariff
quota, which triggers an additional tax when the import cap is exceeded.
Justin
Tupper, president of the United States Cattlemen’s Association, said that
buying beef from Argentina, which does not have the same quality safeguards as
the United States, was a “horrible idea.” He warned that meat processors would
mix the cheaper imported beef with American beef to lower prices, and argued
that a pound of ground beef was no more expensive than a high-end coffee drink.
“We’re
bringing in something and taking down our own industry,” said Mr. Tupper, of
South Dakota, who urged Mr. Trump to take steps to support American ranchers
and increase cattle production.
Buying
more beef from Argentina would be the latest economic win for a country that
has benefited from Mr. Trump’s presidency, including his trade war. China has started
buying more soybeans from Brazil and Argentina instead of the United States,
upsetting domestic farmers who have nowhere to sell their crops and have seen
prices fall.
Mr.
Trump has said that he wants to use revenue from tariffs to support American
farmers, but so far he has not introduced an aid plan.
The president is expected to raise the issue with President Xi Jinping of China
when they meet later this month.
This
would not be the first time Mr. Trump defied his protectionist instincts to
keep inflation contained as he pursues his aggressive tariff policies. Earlier
this year, he looked to South Korea and Turkey to supply eggs as prices in the
United States surged.
Mr.
Trump, who has a personal affinity for Mr. Milei and wants him to help reduce
China’s influence in Latin America, defended his efforts to help Argentina
while American farmers struggle.
“Argentina
is fighting for its life,” Mr. Trump said on Sunday. “They have no money, they have no anything. They’re fighting so hard to
survive.”