Trump authorizes more beef imports in effort to lower prices
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President Trump said Friday that he would temporarily increase beef imports free of tariffs and that he had secured a commitment to sell the meat at 25% below current market prices.
Why it matters: A global shortage of cattle has driven up red-meat costs for processors and retailers, making burgers and steaks more expensive on menus and grocery shelves.
Driving the news: Trump said on Truth Social that he had "concluded a deal to substantially lower the price of ground beef for working American families."
- He added that "we have a commitment that this beef will be sold at 25 percent below current market prices."
- "As we work to rebuild this herd and help our ranchers, for the next 90 days, the United States will allow up to 300,000 metric tons of product for ground beef to be imported with no out of quota tariff," he added.
Zoom in: A White House official said the commitment came from foreign beef exporters and that the 25% discount would be passed along to U.S. consumers.
Reality check: Exporters typically do not control retail prices — retailers do — so it was not immediately clear how the president can guarantee the discounts will flow through to consumers.
- "This short-term action allows foreign imports to fill a gap to meet domestic ground beef demand at affordable prices," the White House official said.
Friction point: A U.S. cattle industry trade group said Friday it was "disappointed" by Trump's announcement, saying the move "sacrifices long-term stability for short term messaging."
- "While America's cattle producers share the goal of keeping groceries affordable for consumers, flooding the market with government-subsidized, below-market beef is not the way to rebuild the American cattle herd," Colin Woodall, CEO of the National Cattlemen's Beef Association, said in a statement.
State of play: The U.S. cattle herd has recently started to edge upward after years of decline, but it's still hovering near an all-time low, according to the Farm Bureau.
- Total cattle and calf inventory was 94.2 million as of July 1, up less than 1% from a year earlier, marking the month's first increase since 2018.
Earlier this month, Tyson Foods cut its profit outlook, having posted an operating loss of $707 million in its beef division over the trailing nine months.
- In its most recent quarter, ended June 27, Tyson's beef volumes declined by 15.9% from a year ago, while prices Tyson charged grocery stores, restaurants and other customers rose 12.1%.
Zoom out: Critics say Trump's move Friday shows how his trade war has had a detrimental effect on consumers.
- "Trump is once again explicitly admitting his broad-based tariffs raise prices for Americans — and it's true from groceries to back-to-school shopping to buying a new home," Alex Jacquenz, senior VP of policy, advocacy and research at Groundwork Collaborative, said in a statement.
What's next: Trump will sign an executive order authorizing the tariff-free imports within the next two weeks, the White House official said.
Editor's note: This report was updated with additional information from a White House official and with a statement from the National Cattlemen's Beef Association.
