Trump said on Sunday that he was considering imports to reduce US beef prices that have climbed to record highs. His administration earlier extended a US$20 billion currency swap lifeline to Argentina, which the president considers an ally.
Cattle producers saw the suggestion as a threat to their livelihoods and free markets, at a time when ranchers are profiting from sky-high livestock prices and strong consumer demand.
“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, CEO of the National Cattlemen’s Beef Association industry group.
Last month, the Trump administration frustrated farmers by negotiating financial support for Argentina at a time when Argentina was selling soybeans to China, which has not bought any soy from the autumn US harvest due to its trade conflict with Washington.
“The last thing we need is to reward them by importing more of their beef,” said Rob Larew, president of the National Farmers Union.
Trump floated hiking beef imports aboard Air Force One on Sunday night.
“If we buy some beef – I’m not talking about that much – from Argentina, it would help Argentina, which we consider a very good country, a very good ally,” Trump said.
A US department of agriculture spokesperson said the agency is working to lower beef prices while supporting cattle ranchers with disaster aid and other efforts.
“These actions coupled with President Trump’s work to secure lasting markets for beef producers abroad send a strong message to American cattle producers – raise more beef and rebuild the herd,” the spokesperson said.
The White House did not respond to a request for more information.
US feeder cattle futures tumbled on Friday after Trump first said he was working on a deal to lower beef prices. They hit their lowest level in more than a week on Monday before ending nearly unchanged.
In Montana, Jan McDonald, 78, said she plans to take calves to an auction for sale on Saturday and worried that Trump’s suggestion could hurt prices.
“I don’t know where he’s coming from,” McDonald said. “It makes me very nervous about the future.”
Economists say imports won’t lower prices
Economists said increased imports from Argentina, which last year represented about 2% of total US beef imports, were unlikely to reduce US beef prices.
“The US cannot buy enough beef from Argentina to materially move the needle in the market,” Steiner Consulting Group said.
Imports could also discourage US producers from expanding their herds to boost domestic beef production, economists said. There is no quick fix to boost US output as it takes about two years to produce full-grown cattle, said Derrell Peel, Oklahoma State University agricultural economist.
“Flooding markets with foreign-grown beef could affect our nation’s ability to be food independent in the long-term,” American Farm Bureau Federation President Zippy Duvall said.
US cattle inventories in January dropped to the lowest level in nearly 75 years, after ranchers slashed their herds due to a years-long drought that burned up grazing lands and hiked feed costs.
Supplies tightened more as the US since May has mostly suspended imports of Mexican cattle amid concerns about the northward spread of New World screwworm, a flesh-eating pest that infests livestock.
US tariffs on goods from Brazil have also slowed imports of Brazilian beef.