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Economist warns Brazil tariff proposal could ripple through beef markets
An ag economist says the Trump administration has proposed a 25% tariff on imports from Brazil due to unfair trading practices.
Allendale’s Greg McBride says the tariff threat would fall under the Section 301 trade legislation.
“I don’t know that it necessarily is a grain side argument,” he said. “We don’t know the entire breadth of what they are going to be targeting.”
He tells Brownfield beef could be impacted.
“We have to remember that the beef we get from Brazil is going to be mostly like a trim and grind type. It’s not your high-end cuts like t-bones or porterhouse or any kind of that stuff.”
McBride says nearly 17% of overall U.S. beef imports come from Brazil.
“That’s a good size. That’s the number three country that we import beef from. The other two being Australia and Canada.”
He says it’s possible the 25% tariff could focus on other areas like manufacturing. The U.S. Trade Representative’s Office will hold a public hearing on the tariff proposal on July 6th.
Greg McBride:
I have issues with food stuffs coming from Brazil, especially meat products. First off they are not to be harvesting livestock from deforested areas of the rain forests and there have been repeated cases where the process has been circumvented and when caught they get a slap on the wrist and find another avenue to bring the cattle in. They have a reputation for paying people off including inspectors. And furthermore how well do we monitor the drugs and hormones they give their cattle. Illegal drugs and hormones can be purchased in Mexico that originated in Brazil. Five of their beef plants were just delisted in China for meat that contained hormones that China won’t accept. They knew that upfront but hoped they wouldn’t get caught. Profits are a driving force and if caught they just pay someone off and go again.
They show total disregard for rules and regulations. USDA needs to have an Army of inspectors in Brazil to monitor their meat industry not only in the beef plants but from birth to harvest. I’ve harvested cattle in Mexico and USDA initially inspects the plants and make sure they harvest to our standards (supposedly). But then it’s up to Segarpa (Mexican USDA) to monitor themselves. No one monitors the ranches or feedyards as to how they handle their livestock, what they feed their livestock or what drugs and hormones they use. Clembuterol is an outlawed drug in the US (it’s so strong it’s been said to bring the dead back to life) and a plant deep in Mexico was purportedly caught harvesting cattle that had it in their system. If it happens in Mexico I’m assuming the Brazilians with there penchant for paying people off could be doing the same. The “screwworm” in Mexico originated in livestock brought in from South America illegally and look where we are now! It’s a big money business these days and where money talks and bullshit walks.
On the other hand I have total respect and trust for product from Canada, Australia and New Zealand. And from what I’ve been told maybe even Argentina, they are very protective and proud of their meat industry.