US imposes 10% tariff on Australian beef.
Australian grain fed beef helps fill US supply gaps.
Industry remains resilient with strong global markets.
The Australian Lot Feeders’ Association (ALFA) is disappointed in the US Government’s announcement to impose a 10% tariff on Australian beef, effectively walking away from the long-standing Australia-United States Free Trade Agreement (AUSFTA).
ALFA President, Grant Garey said the US’s decision to impose a baseline tariff of 10% on Australian goods, including beef, is extremely disappointing and goes against our mutually beneficial 20-year trading partnership with the US.
The US is a key market for Australian grassfed beef and trimmings used in burgers. Australian grain fed beef - accounting for 4% of Australia’s total beef exports to the US - is also playing a role in offsetting the shortfall in US production caused by severe drought and a reduced cattle herd.
In the lead-up to today’s announcement, speculation has been high, creating uncertainty. While the outcome is not favourable, it does provide some clarity on the immediate future of beef exports to the US.
The commercial impact of the 10% tariff on grain fed beef volumes will become clearer over time as the full effect on American consumers unfolds under the US Administration’s tariff regime.
This outcome is disappointing for lot feeders, who dedicate significant effort to producing high-quality beef that consumers can enjoy without artificial trade barriers affecting retail prices.
While there will be an adjustment period as global trade responds to the US Administration’s new tariff regime, Australia remains a proud and experienced trading nation.
While the US remains a crucial market, our industry and the Australian Government have proactively diversified and secured key trading destinations — including China, Japan, Korea, the UK, and the Middle East — helping to stabilise our position in response to today’s announcement.
Australia’s supply chains are resilient and highly skilled at delivering premium beef to established markets in a way that maximises value and meets or exceeds customer expectations. This US decision won’t change that — Australian grain fed beef will remain globally recognised and sought after for its quality, consistency, and exceptional eating experience.
As strong advocates for free trade, ALFA will continue working with the Australian Government, on behalf of lot feeders, to push for global trade policies that support open access to international markets, free from unnecessary barriers.
ENDS.
Media Enquiries:
Grant Garey
ALFA President info@feedlots.com.au
(02) 9290 3700
Christian Mulders
ALFA CEO
(02) 9290 3700
About ALFA:
The Australian Lot Feeders’ Association (ALFA) is the peak national body representing and promoting the views of the Australian cattle feedlot industry. ALFA seeks to improve the profitability, professionalism and community standing of the cattle feedlot industry via representation, strategic levy investment in partnership with MLA, best practice standards, industry development activities and member assistance. For more information about the feedlot industry’s credentials go to: www.grainfedbeef.com.au