Trump suspends some beef tariffs for 90 days — Al Jazeera

US President Donald Trump announced in late August a 90-day suspension of some tariffs on beef imports. The decision was intended to make meat cheaper for consumers, but it angered US ranchers who had been preparing to sell cattle. As Al Jazeera reports, livestock auction prices fell sharply after the announcement, temporarily reducing ranchers’ profits.

Ranchers’ reaction

The US Cattlemen’s Association, the National Cattlemen’s Beef Association and the Farm Bureau opposed the decision. Republicans representing rural districts in Congress also distanced themselves from it. At the same time, Chad Basinger, a rancher from Pretty Prairie, Kansas, believes that imports will not have a significant impact on the midterm election results, although some producers may not vote or may support another party.

According to him, ranchers will also take into account other steps by the administration, including the $8 billion in aid for farmers announced on October 19. Potentially competitive electoral districts in Montana, Iowa, Texas and Colorado are located in regions with developed cattle ranching. However, ranchers alone are unlikely to determine the election results.

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Imports and price fluctuations

Last year, Trump imposed a 50% tariff on Brazilian beef. In February, he allowed more duty-free beef imports from Argentina, and in August, from Brazil and Paraguay. Changes in tariffs caused rapid fluctuations in the cattle futures market.

David Anderson, an economist at Texas A&M University, noted that high cattle prices this year should have encouraged producers to expand their herds. At the same time, cheaper imports, in his assessment, weaken this market signal. The US cattle herd has approached its lowest level since 1951. The industry is also under pressure from droughts, high loan interest rates, feed costs and expensive pastureland.