The Trump administration is taking steps to bring down soaring beef prices by halting tariffs on all imported beef and planning to expand financial support for American ranchers, according to a report by The Wall Street Journal.

Figures from the Bureau of Labor Statistics show that the average price of ground beef in U.S. cities reached about $6.70 per pound in March, marking an increase of nearly one dollar compared to the same time last year.

Looking ahead, the U.S. Department of Agriculture projects beef prices will rise by 10.1% in 2026, though the actual increase could fall anywhere between 2.8% and 18.3%. Over the past five years, the cost of ground beef has climbed roughly 40%.

Under the administration’s proposal, the government would suspend the existing tariff-rate quota system, which imposes steeper tariffs once beef imports surpass a certain threshold, and apply the change to all countries that export beef to the United States.

The report comes shortly after federal officials reached a proposed settlement in an antitrust case involving a company that tracks and distributes industry data for meatpackers, which regulators had accused of contributing to rising grocery prices.

The case focused on Agri Stats, a firm based in Indiana that gathers confidential data from meat processors and compiles detailed reports that are then shared within the industry.

Federal authorities alleged that this system enabled producers of chicken, pork, and turkey to raise prices charged to restaurants, supermarkets, and other buyers who did not have access to the same data.

Separately, the Justice Department is continuing to examine potential antitrust concerns within the beef processing sector, following a directive from President Donald Trump to investigate whether foreign-owned meatpacking companies may be playing a role in driving up prices in the U.S.

Multiple factors have contributed to the surge in beef prices, including prolonged drought conditions and a declining cattle population.

A drought that began in 2020 has reduced available grazing land across much of the country and significantly increased feed costs. Dry conditions have continued, and this spring approximately 63% of the nation’s cattle herd remains in drought-affected regions, according to USDA data.

The overall size of the U.S. cattle herd, which has been shrinking for decades, is now at its lowest level since 1951, according to the USDA.

At the same time, advances in breeding and feeding methods have allowed ranchers to produce more beef per animal than in previous years.

Still, many ranchers have been hesitant to expand their herds due to the high cost of feed and labor, as well as ongoing dry weather.

Another factor contributing to tight supply and higher prices is the closure of the U.S.-Mexico border to livestock imports, a measure intended to prevent the spread of the New World screwworm, a flesh-eating parasite. Since late 2024, those restrictions have kept roughly one million cattle from being transported from Mexico into the United States.

{Matzav.com}