U.S. President Donald Trump signed a proclamation on Wednesday to temporarily expand tariff-free import quotas for lean beef by 300,000 tons, aiming to curb record-high consumer prices driven by a 75-year low in cattle inventory.
The livestock shortage stems from prolonged drought and wildfires that have reduced herd sizes across major cattle-producing regions. Live cattle futures fell 0.72% to 218.50 on August 25, reflecting market sensitivity to supply constraints.
The measure follows Trump’s earlier restrictions on cattle imports from Mexico to prevent the spread of the New World screwworm. However, the expanded quotas have drawn immediate criticism from domestic agricultural groups, including the American Farm Bureau Federation, which warned in a letter that lowering tariffs could harm American livestock farmers.
In Brazil, the beef industry association Abiec noted the initiative could present an opportunity for exporters, stating that while Brazil may benefit from the quota expansion, it is not the only potential supplier. The announcement coincides with a gradual reopening of certain cattle ports along the U.S.-Mexico border this week.
The proclamation targets lean beef specifically, a segment where domestic supply has been most constrained. The U.S. cattle herd is currently at its lowest level since 1951, according to industry data.
