Australian beef producers have welcomed the end of 10 per cent tariffs on imports into the United States, but shoppers at home and abroad are unlikely to see immediate price relief. The tariffs, imposed earlier this year under President Donald Trump, were lifted via an executive order exempting hundreds of food products from the base trade duties.
Demand for Australian beef in the US has remained strong despite the tariffs, keeping prices high. Dalene Wray, managing director of exporter OBE Organic, noted that the demand is not expected to change, but it will now be cheaper for importers. She highlighted the huge US appetite for protein products, with her company sending hundreds of tonnes of beef to the US each year.
Domestic beef prices in Australia are more likely to be influenced by local weather and tightening cattle supply. Record flooding in Queensland's Channel Country earlier this year wiped out an estimated 110,000 head of livestock, but surviving cattle have flourished, producing heavier and fattier animals ideal for export. Wray said recent loads to America contained 50 per cent meat and 50 per cent fat, reflecting this change.
Commodities analyst Simon Quilty doubted the tariff removal would lower prices for US consumers, noting that wholesale beef prices are up about 22 per cent for the year. Despite beef costing twice as much as pork or chicken, US consumption continues to rise. Quilty added that other levies, such as those on Brazilian beef, remain in place, and Australian sheepmeat and goatmeat still face a 10 per cent tariff.
Cattle buyer Jack Henshaw from NSW expected countries like Argentina, which faced higher tariffs than Australia, to see more immediate benefits from the US policy shift. He noted that their beef could become cheaper and more marketable in the US than Australian beef. Wray emphasised the need for Australia to stay competitive and diversify into markets like Vietnam, South Korea, and Indonesia.
