Trump’s tariffs on Brazilian products could make hamburgers more expensive in the US. Beef prices in the United States reached record highs this year, and production is expected to fall by 2%.

U.S. President Donald Trump’s intention to put a 50% tariff on Brazilian exports is expected to hike costs for beef used in American hamburgers, traders and experts said Thursday, as producers rely more on imports owing to falling domestic production.

The idea is a major setback for US meat firms, who are already facing a tighter supply of cattle owing to the prohibition of imports from Mexico due to the cow screwworm, a carnivorous bug that is expanding south of the border.

According to economists, the levy would significantly cut Brazilian beef imports and compel industries to seek other supplies as Trump increases the fronts of his global trade war.

“If it’s not changed, the importation of Brazilian beef into this country will simply cease,” said Bob Chudy, a consultant for U.S. companies that import beef. “Not a pound of it will be economical at those levels.”

U.S. beef prices hit records this year, and production is expected to fall 2 percent to 26.4 million pounds after ranchers reduced the nation’s herd to a more than seven-decade low.

A multi-year drought has damaged pastures and made livestock feed more expensive.

U.S. beef imports from Brazil during the first five months of the year more than doubled year-over-year, reaching 175,063 metric tonnes, according to the latest U.S. government data.

Brazilian beef accounts for 21% of total US imports.

Donald Trump says he will impose a 50% tariff on Brazil.
A 50% tariff starting August 1 would raise the tariff rate on Brazilian beef to around 76% for the rest of the year, livestock analysts said.

“Trade is completely frozen today,” Chudy said of the proposal. “We don’t know what to do as an importing community.”

American consumers are also facing sharp price increases on basic goods like coffee and orange juice due to tariffs on Brazil.

American companies import lean beef from Brazil and other countries to mix with local supplies to make hamburger meat.

Until now, consumers have generally been willing to pay high prices for meat, but the tariff would further test their demand.

“This tariff will likely increase the price of beef, a staple food for many, coming on the heels of Congress’s vote to reduce food aid to the most vulnerable consumers,” said Thomas Gremillion, director of food policy for the Consumer Federation of America.

According to Austin Schroeder, a commodities analyst at Brugler Marketing & Management, the tariff forces importers to pay more for Brazilian beef or source from other, more expensive suppliers.

“It helps raise the price,” he added.

Beef importers may seek to increase purchases from Australia, Argentina, Paraguay, and Uruguay after the tax on Brazilian products goes into effect, analysts said.

“There’s not going to be a lot of Brazilian beef coming through here,” said Altin Kalo, chief economist at Steiner Consulting Group. “That’s the reality.”

Follow Europeans24 for more updates!