Argentina Beef Exports to US Face Test From Trump Proposal

Argentina's booming beef exports to the United States could face a new test after Washington moved to widen tariff-free access for suppliers, potentially increasing competition from Brazil, according to a Reuters report by Kylie Madry.

Argentina's beef industry is facing potentially stronger competition in the US market after Washington expanded tariff-free access for imported lean beef trimmings. [Photo: Minerva Foods Facebook]

Argentina's beef shipments to the United States tripled in the first seven months of this year.

Shipments to the US accounted for nearly 20% of Argentina's total beef exports, underscoring the growing importance of the market, according to an analysis by the Rosario Board of Trade cited by Reuters.

The increase has been driven by strong US demand as domestic cattle supplies have tightened, particularly for lean beef used in hamburgers and processed foods.

Argentina has preferential access for 100,000 metric tons of beef exports to the US this year and had used 61% of that allocation as of the Reuters report. Argentine exporters are now watching the Trump administration's plan to add up to 300,000 metric tons of tariff-free access for imported lean beef trimmings.

The additional quota is intended to increase supplies of beef suitable for grinding and help lower US ground-beef prices.

Argentina would not be eligible for the new 300,000-metric-ton allocation because the additional quota is designated for “other countries or areas.”

That could increase competitive pressure on Argentine exporters, particularly if Brazil captures a significant share of the new access.

Brazil, a much larger beef exporter, could benefit from the expanded US access as it looks for alternative markets amid uncertainty over shipments to China and the European Union, according to the Rosario Board of Trade analysis cited by Reuters.