After floating the idea last fall, the White House in early February formalized an agreement with Argentina to boost Argentine lean beef trimmings into the U.S. As part of the deal, the U.S. will be given reciprocal access into the country.
On. Feb. 5, U.S. Ambassador Jamieson Greer signed the United States-Argentina Agreement on Reciprocal Trade and Investment with Argentina Minister of Foreign Affairs, International Trade, and Worship Pablo Quirno.
“The U.S.-Argentina Agreement lowers long-standing trade barriers and provides significant market access for American exporters, ranging from motor vehicles to a wide array of agricultural products,” Greer said.
Under the agreement, Argentina will provide preferential market access for certain U.S. goods, including agricultural products, according to a White House fact sheet. The deal improves some sanitary and phytosanitary barriers that limited beef exports to Argentina, and allows temporary duty-free importation of U.S. beef into Argentina.
On Feb. 6, President Donald Trump issued a proclamation on “ensuring affordable beef for the American consumer.” Trump pointed to drought, wildfires and detections of the New World screwworm as factors for contracting the cattle herd, resulting in higher beef prices.
“Despite the increased prices and the availability of more affordable protein alternatives, United States consumers’ demand for beef remains strong,” Trump said, noting that the average price of ground beef in December was $6.69 per pound.
“After considering the information provided to me by the secretary of Agriculture, among other relevant information, I am taking action to temporarily increase the quantity of in-quota imports of lean beef trimmings under the United States beef (tariff rate quota) to increase the supply of ground beef for United States consumers,” Trump said, all of which will come from Argentina. The deal is estimated at a value of $800 million in Argentine beef imports.
USDA Secretary Brooke Rollins will monitor the domestic supply of lean beef trimmings and advise Trump on how the availability of competitive products or beef imports relates to domestic demand at reasonable prices, the proclamation continued.
The deal establishes a reciprocal 80,000 metric tons (mt) quota for the U.S. and Argentina in 2026, which will be allocated on a quarterly basis. Argentina will be limited to exporting lean beef trimmings only, while the U.S. will not face the same restriction, according to details shared by the U.S. Cattlemen’s Association (USCA).
The new quota is in addition to Argentina’s current 20,000 mt tariff rate quota, which is not restricted to lean trimmings. As such, total Argentine beef imports for 2026 could total 100,000 mt under the quotas. Any additional imports into the U.S. will face a 26.4% tariff rate.
When asked during a Feb. 10 press briefing how the Trump administration planned to make sure beef prices go down for consumers without harming ranchers, White House Press Secretary Karoline Leavitt responded, “Both things can happen at the same time.”
“Beef prices are coming down slightly, and the president wants to see that continue,” she said. “He believes that a minor import to the country with cattle might be a short-term solution with respect to bringing down prices.
“But of course, protecting our American cattle and rancher industry is a priority for the president, and he’s in touch with those stakeholders,” Leavitt added.
Argentina accounts for about 2% of total U.S. beef imports. Economists have generally said the expanded imports will have little effect on U.S. beef supplies or consumer prices. The 100,000 mt would account for about 5% of U.S. beef imports, or about 1% of total U.S. beef consumption.
“Industry experts do not believe increased imports from Argentina will have a measurable impact on prices paid by consumers for beef,” Bernt Nelson, American Farm Bureau Federation economist, wrote in a Market Intel report.
However, he noted the market responses seen after the first October announcement. After Trump’s initial announcement, the five-market average cash cattle price fell 13%, from $239/cwt to its low of $207/cwt on Nov. 28. Feeder and live cattle futures also experienced several limit down trading sessions following the announcement. Following the February announcement, markets were less reactionary, and futures closed slightly higher following the deal announcement and presidential proclamation.
Industry reactions
Cattle industry groups had mixed reactions to the beef import news. Although generally opposed to boosted imports, groups noted appreciation for the reciprocity of the deal.
“While we fundamentally disagree with the premise that increased imports can lower beef prices, National Cattlemen’s Beef Association (NCBA) is encouraged to see the Trump administration take necessary steps to address longstanding market-access challenges for U.S. beef in Argentina,” said Kent Bacus, NCBA executive director of international trade and market access.
Bacus acknowledged, however, that the organization remains concerned with Argentina’s history of foreign animal diseases, and warned that without increased inspection protocols and up-to-date audits, American consumers and the domestic cattle herd could be at risk.
The USCA said it has been in contact with the Trump administration since the import plan was first mentioned in October.
“While USCA remains opposed to the increase of imports from Argentina, we appreciate the reciprocal nature of this agreement—U.S. beef producers will have equal access to the Argentine market, and the imports into the U.S. are limited to lean trimmings, not all beef products,” USCA President Justin Tupper said. “However, while this is a reciprocal agreement, we must still measure against the economics and pen to paper realities U.S. producers are facing.”
Ranchers-Cattlemen Action Legal Fund, USA (R-CALF) said inviting more and lower-cost imports into the U.S. market—without informing consumers about the products’ country of origin—would allow any potential benefit to go to global beef packers and retailers at the expense of U.S. farmers and ranchers.
“While we appreciate President Trump’s efforts to achieve greater consumer affordability, what America must do to restore lasting affordability is rigorously enforce antitrust and fair-competition laws, align trade policy with food security through tariffs and tariff-rate quotas, and implement country-of-origin labeling so consumers can choose between imported beef and American beef,” said R-CALF CEO Bill Bullard.
The Texas Cattle Feeders Association (TCFA) noted that an additional 80,000 metric tons of beef from Argentina would supply about three days of beef consumption in the U.S.
“As a point of comparison, the continued absence of 1.2 million feeder cattle from Mexico equates to approximately one billion pounds of annual beef production (450,000 metric tons), which amounts to 4% of annual U.S. beef production or 17 days of beef consumed by U.S. consumers,” said TCFA President and CEO Ben Weinheimer.
Sen. Deb Fischer (R-NE) called for a “real solution” to lower beef prices. “Instead of imports that sideline American ranchers, we should be focused on solutions that cut red tape, lower production costs, and support growing our cattle herd,” Fischer wrote in a statement.
Fellow Nebraskan lawmaker Rep. Adrian Smith (R-03) echoed Fischer’s sentiments, pointing to record-low cow herd numbers. “Now more than ever, we must deliver policies which drive confidence in the market, eliminate burdensome regulations, and lower production costs,” Smith said. “While the United States holds historic low-inventory in cattle herds, we must focus on policies that strengthen the market and create long-term certainty for the entire supply chain.” — Anna Miller Fortozo, WLJ managing editor
