US President Donald Trump's plan for a 50% tariff on goods from Brazil will likely raise prices for the beef that is used in American hamburgers, Reuters reported, citing traders and analysts on Thursday, as food manufacturers increasingly rely on imports during a time of declining domestic production.
The proposal is a blow to US meat companies also facing tighter cattle supplies due to a halt of livestock imports from Mexico over New World screwworm, a flesh-eating pest spreading south of the border.
The tariff would slash imports of Brazilian beef and force companies to seek supplies from other nations as Trump is broadening his global trade war, analysts said.
"If it does not get modified, you just cease the importation of Brazilian beef to this country," said Bob Chudy, a consultant for US companies that import beef. "Not one pound will be economic at those levels."
US beef prices climbed to records this year and production is projected to fall 2% to 26.4 million pounds, after farmers reduced the nation's cattle herd to its smallest size in more than seven decades. A years-long drought dried up pasture land used for grazing, making it too expensive for many producers to feed their cattle.
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