Debate Over Tariffs and Cattle Prices Heats Up: Trump vs. Ranchers

President Donald Trump claims that tariffs have benefited U.S. cattle ranchers but urges them to lower beef prices for consumers. The possibility of importing Argentine beef to reduce consumer costs has sparked concern among U.S. ranchers. Economists argue that supply and demand factors are primarily driving high cattle prices.

In a move stirring the agricultural sector, President Donald Trump asserted that U.S. tariffs are benefiting cattle ranchers yet urged them to reduce prices. The President's remarks came amidst potential plans to import beef from Argentina to alleviate consumer costs, a proposal drawing ire from American ranchers.

Economic tensions are further exacerbated by a recent loss of U.S. soybean sales to China, favoring Argentina. Trump emphasized that the success of cattle ranchers is linked to his imposed tariffs, a claim met with skepticism. Experts highlight that high cattle prices are primarily due to supply-demand imbalances rather than tariffs.

In response, eight Republican members of Congress have pressed for clarity on the beef import plans. Economists caution against quick fixes, noting it takes years to increase cattle supply. Meanwhile, feeder cattle futures experienced a significant drop following Trump's statements.

(With inputs from agencies.)