Beef prices in focus as Trump signs order aimed at consumer relief
President Donald Trump on Friday signed an executive order to expand beef imports from Argentina as consumers face higher prices amid supply constraints impacting the U.S. cattle industry.
Trump's order implements a trade framework he reached with Argentina in November that aims to increase beef imports to help mitigate the surge in beef prices that has occurred in recent years.
In 2018-19, ground beef prices were under $4 per pound but began rising during the pandemic and have been above $5 a pound since June 2023 while continuing to increase, reaching about $6.69 a pound in December, according to data from the Bureau of Labor Statistics (BLS). Sirloin steaks were around $8.50 a pound in 2019, but have been over $11 a pound since the summer of 2023 and hit $14.02 a pound in December.
Over the last year, ground beef prices are up 15.5% through December while the cost of a steak has risen 17.8%, according to the BLS' consumer price index (CPI). A fresh read of the CPI inflation is due at the end of this week when January's data is set to be released – though high beef prices are expected to persist due to domestic supply challenges.
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Cattle ranchers have reduced their herds due to drought and wildfire affecting key ranching regions in recent years, which left the nationwide cattle inventory at its lowest level in 70 years. Although some ranchers have started to slowly rebuild their herds, it takes at least two years to raise full-grown cattle.
Overhead costs for cattle ranchers have also climbed, with feed, labor, fuel and equipment expenses trending higher.
Additionally, cattle imports from Mexico have been restricted due to the New World Screwworm, a parasitic infestation that can afflict livestock.
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Under the Trump administration's announcement, the tariff-rate quota for imports of lean beef trimmings from Argentina will increase by 80,000 metric tons for calendar year 2026.
The additional imports will be allocated entirely to Argentina and released in four quarterly tranches beginning on Feb. 13.
The White House said in a fact sheet that the action is intended to boost supply and make ground beef more affordable for American consumers, citing an 8.6% decline in domestic beef cattle inventory since 2020.
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The announcement drew pushback from the nation’s largest cattle industry group, which questioned whether increased imports would deliver the price relief the administration is promising.
"While we fundamentally disagree with the premise that increased imports can lower beef prices, NCBA is encouraged to see the Trump administration take necessary steps to address longstanding market-access challenges for U.S. beef in Argentina," said Kent Bacus, executive director of international trade and market access at the National Cattlemen’s Beef Association (NCBA).
Bacus warned that Argentina’s history with foreign animal diseases raises concerns about expanding imports without stronger safeguards.
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"Given Argentina’s issues with foreign animal diseases, NCBA remains concerned that expanding imports from Argentina without increased inspection protocols and up-to-date audits could place American consumers and our cattle herd at unnecessary risk," Bacus said.
FOX Business' Jasmine Baehr contributed to this report.