Tariffs and Trade in the Lamb Market

By David Anderson

Tariffs and trade have been a big topic across the economy and agriculture.  In the lamb industry, tariffs have been controversial, with producers on both sides questioning their necessity.  The lamb industry is a smaller agricultural sector in the U.S. but one in which there has been some growth in the South, particularly since the introduction of hair sheep breeds.  

Some Historical Context

Lamb imports have been a controversial topic for many years.  Surging imports in the early 1990s led to investigations by the U.S. International Trade Commission (USITC) on unfair trading practices by Australia and New Zealand.  Tariffs, as a remedy for rising imports, were not imposed and domestic production continued to decline.  (As an aside, part of my PhD dissertation research, longer ago than I would like to admit, looked at the potential impact of a 10 percent tariff on imported lamb).  By 2006, imports exceeded domestic production.  In 2024, lamb and mutton imports amounted to about 70 percent of total supplies on the U.S. market.  

Almost all, over 99 percent, of imported lamb and mutton comes from Australia and New Zealand.  About 75 percent of imports are from Australia.  New Zealand has made up a declining share of U.S. imports over time.  In 2024, about 85 percent of the total product coming in was lamb and the rest mutton.