What US beef tariff removal will mean for Australian producers

While processing cow prices hover near 400c/kg, Australian beef producers question whether Trump’s tariff removal will move the market.

Livestock producers are waiting to see how the scrapping of the United States 10 per cent tariff will play out in prices.

The move by US president Donald Trump to remove the tariff on beef could add to already high processing cow prices, which constitute a large portion of Australian exports to the US as 90CL beef.

The processing cow indicator closed late last week at 395c/kg liveweight nationally, and 409c/kg liveweight in Victoria.

US president Donald Trump has removed the 10 per cent tariff on beef imports.

Removing the tariff, which was announced in March, has been welcomed by all sectors of the Australian cattle industry.

Victorian Farmers Federation livestock group president Scott Young said because Australia exported so much red meat, there were always challenges but described the tariff removal as “great news”.

But Mr Young said it appeared that the 10 per cent tariff on Australian exports to the US had little impact on volumes.

He said he did not expect the tariff removal would have much impact on cattle prices.

“Prices are pretty solid at the moment, and to be honest, they can jump around at saleyards by 10 per cent from week to week anyway,” Mr Young said.

And while he was disappointed the tariff was not removed for lamb, the world shortage of red meat protein meant that the US tariff regime appeared to have little impact on rates paid to producers.

Meat and Livestock Australia managing director Michael Crowley said the US was a valuable and long-term trading partner.

“So far in 2025, Australia has exported 370,357 tonnes of beef to the US, 17 per cent more than the first 10 months of 2024.”

Cattle Australia chief executive Will Evans said removal of trade barriers was “a fundamental objective for Cattle Australia”

“As an incredibly important market for Australian beef, we greatly value our relationship with the American industry and consumers,” Mr Evans said.

“The decision to remove tariffs will further strengthen that relationship.”

The removal of tariffs on US beef imports has been welcomed by all sectors of the Australian cattle industry. Picture: Zoe Phillips

The Australian Meat Industry Council said the tariff removal was good news for the industry.

“This development reinforces the value of open and fair trade for the Australian meat sector and underscores the importance of reliable market access and rules-based trade,” AMIC chief executive Tim Ryan said.

“AMIC will always advocate for free and fair trade for Australian meat businesses so they can continue to provide high-quality nutritious food to consumers around the world.

“The US consumer will be the primary beneficiary of these latest changes.”

Australian meat is a significant input into US food manufacturing and is a reliable, safe Mr Ryan said US demand for Australian beef had never been strong.

“This decision will ensure that American consumers will continue to have access to well-priced quality Australian product, which we have been trading to the US for over 50 years,” Mr Ryan said.