Trump delays plan to ease tariffs on imported beef, newspaper says

The Trump administration is delaying a plan to suspend tariffs on imported beef, according to The Wall Street Journal.

Trump had been set to sign executive orders on Monday aimed at lowering beef prices, in a fresh push to address U.S. voter concerns over costs, Bloomberg had reported earlier.

The orders are intended to address short-term supply problems in the U.S. beef market by expanding imports and supporting the rebuilding of the country’s domestic cattle herd.

But the measures were delayed as the administration finalizes the details, the Journal said, citing a White House official.

The newspaper added that the delay came after an outcry from cattle ranchers and some congressional Republicans.

The U.S. cattle herd has fallen to its lowest level in 75 years, pushing consumer beef prices to record highs while squeezing meat processors’ margins.

Beef costs have been one of the main drivers of food inflation, making the issue a political flashpoint for the Trump administration ahead of November’s congressional elections.

Trump’s measures would suspend the annual tariff-rate quota, which applies a higher duty once a certain level of beef imports is reached, for all beef-exporting nations, the Journal reported, citing people familiar with the matter.

That would allow more beef to enter the United States at lower prices.

However, higher imports carry political risks.

Many U.S. ranchers, an important segment of the president’s political base, say foreign supplies are hurting their businesses.

Last year, Trump faced strong backlash from farmers and Republicans in agricultural states after deciding to quadruple Argentina’s duty-free beef quota.

The United States is already on track to import a record amount of beef this year, according to the U.S. Department of Agriculture.

Those supplies in the first quarter mainly came from Brazil, Australia and Canada, according to USDA data. Brazil, the world’s largest beef exporter, in particular, is poised to ship more to the United States as its usual buyer, China, has imposed quotas.

The Trump administration also plans to instruct the Small Business Administration to increase loans to U.S. farmers, while reducing some rules involving protections for endangered wolves and ear-tag requirements, the Journal said.

Last fall, the USDA also announced a plan aimed at easing regulations, including on grazing access, to increase supply.

Adapted from text by Jeff Sutherl and Ilena Peng for Bloomberg Línea

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