Trump Pressures U.S. Cattle Ranchers to Cut Prices Amid Beef Market Turmoil
President Trump praised cattle tariffs but told U.S. ranchers to lower beef prices for consumers, sparking pushback from producers and economists.
Former President Donald Trump stirred controversy in the ag sector this week by calling on U.S. cattle ranchers to reduce beef prices, even as he touted the benefits of his tariff policies that limited imports and supported domestic markets.
Speaking via Truth Social on Wednesday, Trump said ranchers were enjoying success "for the first time in decades" thanks to tariffs-especially a 50% duty on Brazilian beef-but added, "They also have to get their prices down, because the consumer is a very big factor in my thinking, also!"
His remarks followed backlash over an earlier statement suggesting the U.S. might begin importing Argentine beef to cool high retail prices. That proposal angered many in the cattle industry already facing competitive pressure from Argentina on soybean sales to China.
Beef prices have climbed dramatically over the past year, fueled by herd liquidation after years of drought, rising feed costs, and limited grazing land. The result has been reduced cattle inventories and record-setting prices at both the wholesale and retail levels.
According to USDA data, the solution isn't immediate. Economists warn that rebuilding herds is a multi-year process, with full-grown cattle requiring up to two years to reach market weight. "He needs to take a class in supply and demand," said Arlan Suderman, chief commodities economist at StoneX. "If you want to increase the supply of beef long term, you don't do it by lowering prices."
The U.S. Department of Agriculture appears to agree. Agriculture Secretary Brooke Rollins announced this week that the agency would unveil a new program aimed at "restoring and revitalizing the beef herd in America." Further details were expected following her appearance on NewsNation.
Despite Trump's praise for tariffs, analysts say the import restrictions also contributed to rising beef costs. Brazilian beef shipments were curtailed this summer, and buyers were forced to turn to higher-priced alternatives. "That certainly contributed to the higher cost of beef at the retail level," Suderman noted. "It doesn't mean more profits to people feeding out cattle."
In response to Trump's suggestion to import beef, eight Republican lawmakers, led by Rep. Julie Fedorchak of North Dakota, sent a letter urging the administration to act with "full transparency" and a "firm commitment to the U.S. cattle industry."
The impact of Trump's remarks was swift: feeder cattle futures plummeted on Wednesday, with January contracts falling by the daily limit, down 9.25 cents to 361.025 cents per pound, erasing recent record highs.
The political and economic tensions highlight the delicate balance between consumer inflation, producer margins, and loterm supply chain sustainability in the beef sector.