By Jeff Mason, Tom Polansek and Leah Douglas
WASHINGTON/CHICAGO (Reuters) – U.S. President Donald Trump’s administration is quadrupling the tariff quota on Argentine beef to 80,000 metric tons in a bid to drive down prices, a White House official said on Thursday.
The move allows Argentina to send more meat to the United States at a lower tariff rate at a time when American beef prices have set records due to tight livestock supplies and strong consumer demand.
The plan to import more beef from Argentina has angered American ranchers, who largely supported Trump in his presidential campaigns. They said the government should support domestic producers and that increased imports threaten their livelihoods.
“A deal of this magnitude with Argentina would undermine the very foundation of our cattle industry,” said Justin Tupper, a South Dakota cattle producer and president of the United States Cattlemen’s Association.
Agriculture Secretary Brooke Rollins said on Fox Business Network’s “Mornings with Maria” that the administration was working to support both meat eaters and ranchers.
“There’s frustration on both sides. And I was with the president yesterday and he’s very, very frustrated with everything he’s done to cut taxes and reduce costs,” Rollins said.
The U.S. Department of Agriculture announced a plan Wednesday to expand the national livestock herd and support American ranchers, after Trump said he was working to lower the price of beef in the country.
Economists said the plan probably wouldn’t do much to lower prices quickly. The supply of livestock in the United States has fallen to its lowest levels in decades after a drought burned pastures used for grazing and increased feed costs, forcing ranchers to reduce the size of their herds.
MEAT DIRECTED TO HAMBURGERS
Miguel Schiariti, president of the Chamber of the Argentine Meat Industry, CICCRA, told Reuters that meat exports to the United States consist of traditional cuts of meat from the country and meat used in the hamburger industry to reduce fat levels.
“It’s good news for the industry,” Schiariti said. “Argentine meat is highly valued in the United States. It has very good press. Argentina is rebuilding its distribution chain in the United States.”
However, U.S. analysts said increasing the quota amount probably would not reduce meat prices for consumers much. The United States often imports lean beef from Argentina that is mixed with domestic supplies to make hamburger meat, they said.
Some of the meat could be served in restaurants or mixed with other food products, analysts said. This would help restaurant operators and food companies improve their margins, but not necessarily reduce prices for consumers, they said.