President Trump has broken away from his “America First” trade agenda and begun a spat with some of his loyal supporters over US beef prices.
Trump focused his economic agenda on reducing US dependence on cheaper foreign products and increasing domestic production of goods and food.
But the president’s plan to increase Argentine beef imports while urging American suppliers to lower their prices marks a major shift from his own platform.
The dispute threatens Trump’s long-term support from farm and labor groups that sided with the president during his first term despite opposition to his trade agenda.
“I don’t know who told our great president – our ‘America First’ president – that this was a good idea,” said Republican Rep. Marjorie Taylor Greene (R-Ga.), a staunch Trump ally, in a scene this week on “The Tucker Carlson.” “Frankly, this is a devastating blow to all American cattle ranchers, and they are furious, and rightly so.”
Trump last week announced plans to double beef imports from Argentina, raising panic among farmers and concerns among Republican lawmakers.
Beef prices rose 15 percent from a year ago due to a combination of environmental factors and tariffs imposed in Trump’s trade war, according to federal inflation data released Friday. The 3.1 percent increase in food prices last year came largely from higher beef prices.
Trump said importing Argentine beef would lower prices in the U.S. and save the bankrupt South American nation. The president has approved billions of dollars in aid to his country to support his ally, Argentine President Javier Milei, who faces re-election while presiding over an economic crisis.
“They were fighting for their lives. Do you understand what that means?” Trump told reporters on Sunday in response to a question about Air Force One.
“They have no money, they have nothing. They are struggling to survive. If I can help them survive in a free world, I love the Argentine president, I think he is trying to do the best he can. But don’t talk as if you are doing great things,” he said.
The president faced bipartisan criticism for his decision to bail out Argentina through $20 billion in direct fiscal support during the ongoing government shutdown, which left thousands of members of the military and federal workforce unpaid.
But the decision to double the quota for duty-free cattle ranchers in Argentina angered ranchers and some Republican lawmakers.
“We love and support you – but your proposal to buy beef from Argentina to stabilize beef prices would be an absolute betrayal of American cattle ranchers,” Wyoming-based Meriwether Farms wrote in a post addressed to Trump on the social platform X.
“The Trump administration remains committed to addressing the needs and concerns of American livestock producers and protecting their interests at home and abroad,” White House spokesman Kush Desai said in a statement to The Hill, touting “billions of dollars in new export opportunities for American agricultural products across our historic trade agreements.”
“The administration is focused on reversing the long-term decline in the live cattle supply by growing America’s cattle herd with strong action to provide disaster relief to cattle states, support new ranchers, and reduce risks for cattle producers,” Desai said.
Trump enjoyed strong support from America’s agricultural sector throughout his first term, even as the impact of the trade war increasingly burdened farmers.
Pork and soybean producers saw sharp declines in international sales during the first Trump administration, particularly as China withdrew orders for American agricultural products.
Nonetheless, most agricultural interests sided with Trump. The first administration poured billions of dollars in economic aid into the agricultural sector as it worked to reach agreements intended to open foreign markets to U.S. exports and block foreign competition.
But Trump’s second term was far more controversial.
US farmers and ranchers are again facing a backlash over Trump’s tariffs, which have prompted trading partners to impose their own taxes on American goods or reject them altogether.
The American agricultural industry is also struggling to keep up with rising input costs such as fertilizer tariffs and labor shortages resulting from Trump’s immigration agenda.
“The result is not just a short-term disruption,” experts from the Center for Strategic and International Studies (CSIS) wrote in an analysis on Tuesday.
“This could signal a major restructuring in global agricultural trade, from Latin America to Europe and Australia.”
Although Trump and Agriculture Secretary Brooke Rollins promised to keep farmers afloat during tough times for the agricultural economy, the president’s decision to aid Argentina rendered those promises futile.
The US beef industry is struggling to replace sales to China, which have fallen more than 90 percent since March, CSIS experts said.
“These lost sales are spreading across America’s agricultural heartland,” they wrote. “Given that China is the largest export market for these sellers, China’s retaliatory trade barriers are forcing farmers to rethink their business strategies.”
Argentina’s bailout raised concerns among some segments of the agricultural industry and its allies in Congress even before Trump announced plans to buy beef from the country.
As US soybean producers struggle to sell their crops to foreign buyers, Argentina has forged closer trade ties with China. Beijing purchased several ships’ worth of soybeans from Argentina after cutting US imports, allowing Milei to play on both sides of Trump’s trade war.
Responding to Trump’s crackdown on US farmers, Senator Chuck Grassley (R-Iowa) said, “The president would be better off if he just kept his mouth shut on this issue and didn’t tweet.” Des Moines Register .
Grassley’s hometown has been hit hard by the impact of Trump’s trade war, given that the Hawkeye State relies heavily on soybean, pork and beef exports.
“You’re not going to win. He should concentrate on what he’s doing to help beef producers,” he said.
Some critics of Trump’s plan to buy Argentine beef say it is motivated by a desire to help the Mexicans rather than an interest in lowering prices.
“Look, I agree with lowering prices, but this isn’t really about lowering prices. This is about keeping friends,” said Sen. Ruben Gallego (D-Ariz.).
The senator, whom Trump has called a “mean little man.” Even those who disagree with Trump’s trade goals, such as Rand Paul (R-Ky.), say Argentina’s plan runs counter to Trump’s agenda.
Paul said the plan “seems to contradict the protectionism being promoted in other sectors, so I think there are some inconsistencies in it. I personally support competition and international trade.”
As Trump fends off criticism, beef producers and their supporters in Congress are pushing the administration to take different steps to support the US beef industry.
“This is not the right way to do it,” Senate Majority Leader John Thune (RSD) said this week of Trump’s efforts to lower prices. “It has created a lot of uncertainty in the market. So I hope the White House gets the message.”
The government on Wednesday released a plan to shore up the U.S. beef supply by increasing access to grazing land, reducing inspection costs and boosting domestic beef demand.
Beef industry groups are also calling on the Trump administration to complete construction of a facility aimed at combating the New World screwworm parasite, which can spread with devastating impacts on livestock, and to tighten labeling rules in countries of origin.
“If President Trump is truly an ally of American cattle producers, we would urge him to abandon these market manipulation efforts and instead focus on the promised New World Screwworm facility in Texas; make additional investments that protect domestic cattle herds from foreign animal diseases… and address regulatory burdens,” Colin Woodall, CEO of the National Cattlemen’s Association of Cattlemen, said Wednesday. We called.”
Filip Timotija contributed.
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