Mexico Seeks Deal to End US Cattle Import Blockade

Amid a price crisis in the US livestock sector driven by droughts, rising maintenance costs, and tariffs, the Mexican government will seek to reach an agreement with the United States to end the ongoing cattle trade blockade.

This week, Julio Berdagué, Minister of Agriculture and Rural Development (SADER), will travel to the United States to meet with Brooke Rollins, US Secretary of Agriculture (USDA), to discuss the border blockade, which has restricted imports of Mexican cattle since May. “We hope he can return with an agreement to reopen the border,” said President Claudia Sheinbaum during her regular press conference.

Meanwhile, in the United States, beef prices have risen nearly 14% over the past 12 months, according to the latest inflation data from the Bureau of Labor Statistics. In June, the average price of ground beef increased to US$6.12/lb, up nearly 12% year over year. Similarly, steak prices reached an average of US$11.40/lb, marking an 8% increase during the same period.

Becca Jablonski, Agricultural Economist, Cornell University’s Johnson School of Business, explained that several factors are driving the price increases. One key factor is the cattle shortage, which has been worsened by a screwworm infestation in Mexico that halted imports. Additionally, a prolonged drought in recent years has reduced available grazing land and driven up the cost of feed grains, further straining cattle supplies.

These conditions, combined with the 50% tariffs imposed on Brazilian beef imports, have benefited US ranchers, who are experiencing a profitable year that has allowed many to pay off debts accumulated during less favorable periods, Jablonski noted.

On the other hand, inflation continues to pressure consumers. In an attempt to address the issue, US President Donald Trump announced last week that the United States may begin purchasing beef from Argentina to help lower domestic prices, as reported by MBN. Currently, Argentina can export up to 20,000t of beef to the United States at a reduced tariff rate, while any additional imports are subject to a 26.4% tariff. Under Trump’s proposed measures, that quota would rise to 80,000t, quadrupling the amount of low-tariff beef allowed into the country.

The decision has drawn strong criticism from the US cattle industry, one of Trump’s core political allies. Industry representatives argue that the move contradicts the original purpose of tariffs, which was to strengthen domestic production and support American ranchers. “We are finally getting good prices, and now we are talking about government policies to bring them down,” said David Anderson, Livestock Economist, Texas A&M University.

However, experts point out that Argentine beef accounts for only 2% of total US imports, meaning that even doubling or quadrupling that amount would have little effect on overall prices. Most of the imported beef is lean trimmings used by processors to blend with fattier US beef for ground meat production. As a result, any impact would be felt mainly in hamburger meat, while steak prices would likely remain elevated.

Some also argue that Argentina lacks the production capacity to offset major import shortfalls. Sid Miller, Texas Agriculture Commissioner, said that to truly reduce beef prices, the United States needs to import breeding cattle to expand domestic herds. “There does not have to be a conflict between our beef producers and consumers,” Miller said.

White House spokesperson Anna Kelly stated that the president is keeping his promises to support both farmers and consumers. “President Trump pledged to protect American ranchers while providing economic relief to everyday citizens. The administration is achieving both goals by expanding beef imports from Argentina to lower short-term consumer prices, while launching a new USDA initiative to support ranchers and grow herd sizes to sustain lower prices in the long term,” she said.

The administration’s plan to support ranchers includes expanding access to federal lands for grazing and prioritizing grant applications from military veterans seeking to enter the cattle industry, among other measures. Christian Lovell, Senior Program Director, Farm Action, a nonpartisan agricultural organization, said that while the plan may benefit many farmers, it falls short of addressing the sector’s structural challenges. “What US ranchers need is a fair market with the right incentives. We must focus on rebuilding our domestic cow herd. This feels like a quick fix to contain the damage,” he said.