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Eight key US tariff questions answered by MLA

Beef Central 03/04/2025

Meat & Livestock Australia has provided answers to eight frequently asked questions arising from the US Government’s announcement this morning of a ten percent tariff on goods entering the US, including Australian beef, sheepmeat and goatmeat.

Economic research conducted on behalf of MLA suggests a 10pc tariff on Australian imported lean grinding beef alone (not including other beef cuts, nor lamb or goatmeat) will cost Americans an additional US$180 million a year.

What the tariff means for Australian red meat producers:

Strong global demand: Australia continues to export record volumes of high quality red meat, with significant demand across major markets including China, Japan, Korea and the Middle East.

Ongoing government and industry action: MLA has been working closely with industry partners and the Australian Government to assess impacts and ensure our producers are well-equipped to navigate this change.

Market diversification: Our international markets team is actively assessing opportunities to further strengthen and expand access and exports in key export markets.

Resilient US trade relationship: While tariffs will impact pricing for American consumers, the US remains a key export destination. Given the US’s own domestic beef supply constraints, Australian red meat will continue to play an important role in the US market.

MLA said its core focus remained on growing demand for Australian red meat globally.

The service delivery company’s international markets program supports improved access to global markets, and works alongside commercial partners to expand opportunities, while promoting Australian red meat’s reputation as a safe, healthy, and high-quality product.

“We understand that trade developments like this can create uncertainty, however MLA is working closely with industry and government to safeguard the interests of Australian producers,” it said.

Below are eight frequently asked questions to address concerns from the Australian red meat and livestock industry:

What tariffs have been imposed on Australian red meat from the United States (US)?

The US Government has announced a 10pc tariff on goods entering the US, including Australian beef, sheepmeat and goatmeat. The tariff will take effect from 5 April (US time). There is no ban on Australian exports to the US.

Prior to this, Australian red meat products entered the US tariff-free under the Australia-United States Free Trade Agreement.

What do these tariffs mean for Australian red meat producers?

While it is disappointing to hear the US has imposed tariffs on Australian red meat, producers can be assured there is still high demand for our beef, sheepmeat and goatmeat in the US and more than 100 global markets.

We operate in a mature and diverse trading environment (see ‘How are Australian red meat exports performing across other global markets?’).

It’s important to note that tariffs have been imposed on Australian red meat products from other nations previously with minimal impact to producer returns. While a range of factors can impact livestock prices, it is not expected that these tariffs will cause a major disruption to the domestic market. Incredibly strong international demand for Australian red meat will continue to support livestock prices.

Will US demand for Australian red meat be affected?

US consumer demand for high-quality Australian product is expected to remain strong despite the tariffs.

Major grocery retailers and hamburger chains often rely on a combination of imported lean and higher-fat US beef to achieve the lean ground beef Americans love. Australia supplies around 30pc of lean ground beef imported into the US.

Australian beef, sheepmeat and goatmeat imports contribute to stable food supply and prices in the US, particularly when their national herd is low. Currently, the US national herd is at a 70-year low. The US will continue to be a focus for Australian red meat exports despite these tariffs.

What do these tariffs mean for the US?

Economic analysis conducted by Steiner Consulting on behalf of Meat & Livestock Australia estimates that a 10pc tariff on imported Australian lean ground beef will cost Americans an additional $180 million/year.

Australian exports ensure American consumers can reliably enjoy lamb and goatmeat as local demand outstrips US domestic supply.

What is industry’s response to the US imposing tariffs on Australian red meat?

See today’s separate Beef Central article on peak council and MLA responses.

How much Australian red meat is currently exported to the US?

Australia exported $5.7 billion worth of red meat to the US last year. Shipments in 2024 comprised of:

  • 394,716t of beef worth $4.16 billion
  • 104,210t of sheepmeat worth $1.35 billion
  • 22,559t of goatmeat worth $188.5 million.

How are Australian red meat exports performing across other global markets?

The international exports outlook remains very robust and Australian producers can be assured that there are more than 100 strong markets around the world for our red meat.

Here’s a look at what Australian red meat exports to other major markets are worth:

  • China – $3.9 billion
  • Japan – $2.6 billion
  • Korea – $2.5 billion
  • Middle East/North Africa – $2 billion.

What restrictions are there on US red meat imports to Australia?

Despite some media reports and Trump’s comments, there is no ban on US beef exports to Australia. Australia has previously completed science-based biosecurity and food safety assessments that would allow the trade in US beef from cattle born and raised in the US.

However, the US has also asked for access to Australia for beef from cattle raised in Mexico or Canada and processed and subsequently exported from the US. This revised request is undergoing the normal Australian science-based assessment to protect our biosecurity.

 

Source: MLA

 

 

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Comments

  1. Paul Bayliss, 08/04/2025

    I would hope that these figures have been sent to the Trump Administration to rectify the Republican Congressman’s assertion that Australia exports $29b beef to US.

    Our understanding is that the $29b figure was for a decade or more, Paul. That was not made clear in the original statement. The figure is around $3b per year for beef and lamb. Editor

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