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The beef tariff will impact the US more significantly than Australia.
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The US plans to impose a 10 percent tariff.
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EXPLORE FURTHER: Surprising development following Trump’s announcement of an ‘embargo’ on Australian beef
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PODCAST: Trump’s ‘Freedom Day’ Tariffs, along with an unexpected push for the death penalty in the Luigi Mangioni case. Tune into Welcome to MAGAland here.
The Australian beef sector was momentarily stunned on Thursday morning when the US President did this.
Donald Trump
stated he would prohibit Australian beef imports.
These concerns quickly subsided upon announcing that Australian beef would face a 10 percent reciprocal tariff.
“If this were an outright ban, the conversation would be far more intense, and many individuals would feel let down and furious,” said James Morgan, the managing director of Mutooroo Pastoral Company, to Daily Mail Australia.
Although the announcement about the tariff remained discouraging, experts from the industry stated that U.S. consumers would feel the impact more significantly than Australian cattle farmers.
The independent chairperson of the Red Meat Advisory Council, John McKillop, similarly became aware of the ban and felt relief upon discovering that this information was false.
“My first response was a slight pause when he emphasized the beef industry more than any other sector in any nation,” stated Mr. McKillop.
‘We require our political leaders to travel to the United States with the aim of getting rid of that 10 percent tariff, and this needs to occur at the earliest opportunity.’
Mr. McKillop stated that the beef tariff implemented at 3 pm on Thursday indicates that America “will not be considered a trustworthy trade ally.”
“It’s disheartening when you believe you have a friend who has been trading with you freely for two decades, only to have them act like this,” Mr. McKillop stated.
In 2024, the United States received an unprecedented quantity of Australian beef, nearly reaching 400,000 tonnes.
Mr. McKillop asserted that the tariffs would have negative consequences for Americans over time.
“The sole individual who will be disadvantaged by this is the American consumer, who will have to pay higher prices for their goods,” he stated.
Although the United States represents our largest consumer base for beef, most of the product we supply there consists primarily of trimmed cuts. They use our lean frozen trimmings combined with their own fresh fattier trims to create the beef patties used in their favorite hamburgers.
No other nation can provide the sleek, toned cuts that Australia offers, so imports will keep coming in, and the U.S. consumers will bear the cost with a 10 percent tariff.
Mr McKillop likewise forecasted that the tariffs might act as a trigger for Australia to attempt establishing a trade deal with the European Union (EU).
In 2023, a free trade deal between Australia and the European Union fell apart when Australia asserted that the EU did not provide sufficient market access for Australian exports of beef, lamb, dairy products, and sugarcane.
The chairman of the NSW Farmers Association trade committee, John Lowe, concurred and stated that Australia’s beef trading partnership with the EU might soon resume.
“I’ve heard through the rumor mill that the EU is keen on reopening talks with us,” he mentioned.
‘Having discussions once more is likely quite beneficial. The majority of our exporters aren’t inexperienced individuals. They understand this has been in the works for some time now.’
Trade Minister Don Farrell stated that Trump’s tariffs imposed on Europe might push them into reopening negotiations with Australia.
“The world has transformed starting from today,” Mr. Farrell stated.
If they act wisely, they will create a more appealing proposal on the points that caused the previous trade deal to collapse, leading us to secure a free trade agreement with the EU, which is the biggest economic bloc globally.
Trump also stated that Australia had banned American beef which Mr McKillop said was not true.
‘We simply request that they follow biosecurity protocols, which requires them to provide us with information about where the animal was born, raised, and slaughtered,’ he stated.
‘They are unwilling to conform and insist on not establishing a tracking system to ensure no beef enters.’
Mr. Lowe cautioned that the imposition of a beef tariff must not undermine Australia’s position on biosecurity.
“One key aspect from an agricultural perspective is that we shouldn’t sacrifice our biosecurity measures in Australia for temporary benefits,” he stated.
Our biosecurity measures are far too critical. Instead of cutting back, we should be reinforcing them.
Mr. Lowe stated that Australian farmers had more urgent concerns to address rather than worrying about Trump’s tariffs.
‘The more significant issues impacting us are the droughts in the southern regions and the flooding in the northern areas,’ he stated.
But if you have grass and cattle, I wouldn’t be getting overly worried just yet.
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