In a controversial move, President Donald Trump has announced a significant 50 percent tariff on imports of Brazilian beef, set to take effect on August 1.
This decision, if implemented, could lead to a steep increase in beef prices for consumers across the United States.
Currently, the United States is the second-largest importer of Brazilian beef, following China, with Brazil being the fifth-largest source of beef imported into the US.
Over the past year, Brazil has experienced a surge in its share of these imports, now accounting for 21 percent of all beef brought into the country.
This increase has been attributed to domestic challenges within the US, such as widespread drought conditions and rising grain costs impacting local beef production.
In fact, beef imports have doubled during the first half of this year compared to the same timeframe in 2024, largely influenced by the anticipation of these impending tariffs.
Food economist David Ortega from Michigan State University suggests that these tariffs would impose a significant burden on importers of ground beef, a key ingredient for products like hamburgers.
Ortega explained, “They [US beef importers] will either have to pay the higher cost of Brazilian beef or obtain it from other higher-cost sources.
That could lead to higher prices for certain beef products, particularly ground beef and hamburger meat.
This comes at a time when the US cattle herd is at its lowest level in decades and demand for beef remains strong, resulting in rising prices.
With the addition of the 50 percent tariff, the effective rate on Brazilian beef could rise to approximately 76 percent for the remainder of the year, according to livestock analysts cited by the Reuters news agency.
Some domestic trade organizations, including the National Cattlemen’s Beef Association (NCBA), have publicly supported the administration’s decision to impose these tariffs.
Kent Bacus, Executive Director of Government Affairs for NCBA, stated, “NCBA strongly supports President Trump holding Brazil accountable with a 50 percent tariff.
For many years, NCBA has called for full suspension of imported Brazilian beef due to their abysmal lack of accountability on cattle health and food safety.
Brazil’s failure to report cases of atypical BSE [a neurological disease affecting cattle] and their history of [foot and mouth disease] is a major concern for America’s cattle producer.
A 50 percent tariff is a good start, but we need to suspend beef imports from Brazil so we can conduct a thorough audit and verify Brazil’s claims [of safety and health practices].”
As the US faces a decline in domestic beef production, the country has become increasingly reliant on imports.
The production issues have been exacerbated by health concerns regarding livestock imports from Mexico, where a flesh-eating parasite known as screwworm has caused a halt in trade.
The recent 10 percent tariffs, imposed in April, also contributed to a drop in Brazilian beef imports in June as negotiations with various countries continued.
Ortega noted that while domestic beef producers might temporarily benefit from reduced competition, they are simultaneously grappling with high input costs and weather challenges that hinder rapid expansion.
The continued pressures on domestic cattle farmers are significant, with current herd sizes being the smallest in over 70 years, and production is expected to see a further decline of two percent by year-end.
In response to the impending tariffs, Robert Perosa, president of the Brazilian Beef Exporters Association (ABIEC), warned that the new duties would render it “economically unfeasible” for Brazilian exporters to maintain their market presence in the US.
He emphasized the consequences this policy could have for American restaurants, as it will likely drive up sourcing costs, necessitating menu changes due to higher beef prices.
Sean Kennedy, executive vice president of public affairs at the National Restaurant Association, stated, “Dramatic tariff increases could affect menu planning and food costs for restaurants as they attempt to find new suppliers.
As we have said from the outset, our industry relies on a steady supply of imported goods that cannot be produced here in the US, and we urge the Trump administration to pursue policies that will secure fair trade agreements.”
Al Jazeera reached out to several major fast-food chains in the US for their response regarding the tariffs, including McDonald’s, Burger King, Wendy’s, Sonic Drive-In, and Jack in the Box; however, none provided a comment.
Similarly, JBS and Marfrig, two of Brazil’s leading beef producers, did not respond to inquiries after the announcement.
In the financial markets, stocks exhibited a subdued reaction to the tariff announcements, with notable declines reported in major indices.
At market close, the Dow Jones Industrial Average fell by 0.6 percent, and the S&P 500 dropped 0.33 percent.
Interestingly, the stock price for JBS, which holds substantial beef production operations in the US, rose by 0.4 percent, reflecting a complex response to the developments affecting its Brazilian beef business.
Marfrig’s stock, however, decreased by 3.98 percent amid unrelated operational delays, highlighting the mixed impacts of the tariff news on different industry players.
image source from：aljazeera
