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  American tariffs might lead to higher costs for Australian consumers.
  
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Donald Trump
New 10 percent ‘Liberation Day’ tariffs imposed by Australia on exports to the U.S. might ultimately lead to higher costs for local shoppers at grocery stores.

The U.S. president criticized Australia for not easing its stringent biosecurity rules, which could have potentially exempted them from new reciprocal tariffs on their largest export to the United States, beef.

‘Australia prohibits them—and they are lovely people, and excellent in every way—but they prohibit American beef,’ he stated.

‘Nevertheless, we imported $3 billion worth of Australian beef from them solely last year.’

‘They won’t take any of our beef.

They aren’t interested in it because they don’t want it to impact their farming community, and honestly, I can understand their position. However, as of midnight tonight, we’re going to be implementing similar measures.

A kilogram of sirloin steak costs
Woolworths
is currently priced at $28.

However, the Australian Food Sovereignty Alliance, which represents 350 small-scale farmers, is concerned that rump steak could end up priced at $56 for Australian shoppers at supermarkets.

Tammi Jonas, a spokesperson for organic beef cattle production based in Daylesford, Victoria, stated that the new American tariffs on imported agriculture products will likely lead to increased purchases of Australian beef as nations seek alternatives to trade with the U.S.

“We have already established that there’s significant global demand for Australian beef, and I believe this trend will only intensify,” she stated to Daily Mail Australia.

In a worldwide supply shortage like this, we might witness rump steak prices rising above $50 per kilogram.

‘What you call a family dinner is actually a high-end luxury experience.’

Doctor Jonas mentioned that increased export prices could result in fewer Australian meats being available for local consumers, particularly if the United States market remains inaccessible.

“I’d say there’s a good chance of that, indeed,” she remarked.

‘Even if we still have ample beef
sold within Australia
, the prices are sure to increase.

‘Every time you enter those international markets, you have to adapt to the fluctuations. If they can fetch a much higher price abroad, they won’t lower their prices for local sales.’

However, Angus Gidley-Baird, a senior analyst specializing in animal proteins at RaboResearch, stated that premium steaks at grocery stores were improbable due to the robust supply of Australian beef following recent precipitation events.

“We generated all-time high amounts of beef production last year; therefore, I can’t comprehend why we’d face a scarcity in our local market leading to increased prices,” he stated to Daily Mail Australia.

The exports serve as our markets where we channel the extra produce.

Australia has faced across-the-board 10 percent tariffs, aligning with countries such as the UK, Singapore, Brazil, and Chile.

However, China is facing a significantly higher tariff of 34 percent, whereas South Korea is subjected to a 25 percent tariff and Japan to a 24 percent tariff.

According to Meat and Livestock Australia statistics, the United States became Australia’s largest export destination for beef in 2024, significantly outpacing Japan, South Korea, and China.

Out of the Australian beef exported to the U.S., 96 percent consisted of the leaner, grass-fed type, which arrived either chilled or frozen.

Americans have been facing a severe drought, resulting in much of their beef being fatter and predominantly grain-fed.

Beef suppliers from South America, namely Argentina and Brazil, are grappling with insufficient precipitation as well.

Similar to Australia, they would face 10 percent tariffs as well, indicating that other countries involved in beef production are experiencing comparable pressures.

“If we face a substantial tariff that applies universally, our competitive standing will not change,” Mr. Gidley-Baird stated.

On Thursday, The Australian Agricultural Company and Elders will likely encounter share market pressures.

Last year, Australian meat exports to the U.S. amounted to $4.2 billion, comprising 400,000 tons of beef shipped to the American market.

Jessica Amir, a market strategist at Moomoo, stated that one of Australia’s largest exports to the U.S. was facing significant danger.

“Donald Trump stated ‘no more.’ Just like that, it appears that Australia’s largest export to the U.S. might be affected,” she commented.

It seems Trump might impose restrictions on importing Australian beef; however, nothing is confirmed until further information becomes available.

Mr Gidley-Baird stated that despite the import duties, American producers, who typically generate more fatty beef from grain-fed cattle, would still require the leaner Australian grass-fed beef for making hamburger patties.

He mentioned that the US still relies on imports for many products since domestic production isn’t sufficient.

They will still require Australian beef — the drought conditions are improving in the U.S., but they’ve
They sold off their livestock, and both herd size and output have decreased.
.

What Australia exports to the U.S. enhances their production system because it adds balance to the fattier products used for making hamburgers.

They require the product, and I’m among the largest providers of it—logically speaking, even with my rationale intact, I’d conclude that they would still make the purchase.

On the outskirts, robust U.S. demand for grass-fed beef has driven up costs for Australian lean mince, which is currently priced at $15.50 per kilogram at Woolworths.

Mr. Gidley-Baird mentioned that the U.S. market has shown significant strength, as it requires a substantial volume of products. This high demand is exerting some upward pressure on minced meat and lean cuts’ prices.

The Australian Food Sovereignty Alliance has observed that minced meat prices have surged to over $36 per kilogram.

But Dr Jonas predicted tariffs on Australian beef would see American demand plunge, despite the fact they are in drought with an undersupply of grass-fed beef.

‘”Both Americans and Australians are facing equally severe cost-of-living crises,” she stated.’

The Australian Food Sovereignty Alliance did not conduct particular economic analysis regarding Australian beef pricing following the implementation of the Trump administration’s agricultural tariffs set for Thursday.

However, it contended that China experienced an outbreak of African swine fever in 2019.
resulted in a twofold increase in pork prices,
As supplies decreased by 40 percent.

The coalition fights against major agribusiness corporations such as JBS Foods Australia, which controls feedlots and slaughterhouses.

Dr. Jonas mentioned, “The nearby farmers and I are being denied access to the slaughtering facilities.”

Although this seems beneficial for Australia – considering the idea that “we can increase exports” – the truth is that only a small number of individuals benefit from these elevated export figures.

The recent ‘Liberation Day’ duties imposed on agricultural products and pharmaceuticals from Australia come after the 25 percent tariffs placed on steel and aluminum imports, which were implemented on March 12.

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