Beef prices are up 15 percent over the past year according to federal inflation data released Friday. One contributing factor is low supply and high demand. The herd has shrunk as a consequence of recent droughts and high feed costs. The second contributor is trade taxes (tariffs) on imported beef. The high cost of beef has been a primary contributor to a price increase for groceries of 3.1 percent this year.
In another unsurprising example of his on-again, off-again trade policies - president Trump threw American ranchers under the bus with the announcement that he was unilaterally quadrupling beef imports from Argentina - tariff-free. And that domestic beef producers should lower their beef prices in response.
The Cattle Ranchers, who I love, don’t understand that the only reason they are doing so well, for the first time in decades, is because I put Tariffs on cattle coming into the United States, including a 50% Tariff on Brazil, Trump wrote on social media.
It would be nice if they would understand that, but they also have to get their prices down, because the consumer is a very big factor in my thinking, also!
Soybean farmers were among the first to find themselves in the crosshairs of Trump’s tit-for-tat tariffs with China. Since May, China has effectively boycotted American soybeans as a response. And now it's the cattlemen. This is absolutely exhausting.
The domestic agriculture sector is already struggling with the rising cost of fertilizer as a consequence of tariffs and labor shortages driven by the president's immigration agenda. The Center for Strategic and International Studies (CSIS) suggested; The result is not merely a short-term disruption, it could signal a sweeping reconfiguration of global agricultural trade stretching from Latin America to Europe and Australia.
I'm not a big fan of conspiracies although I'm not surprised if some ranchers believe this is driven by the president's desire to help out his buddy, Argentina President Javier Milei.
It likely is some of the foregoing along with an extra helping of old school centralized economic planning at the whim of one guy. You know; Soviet-Style.
































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