Trump Reverses Beef Tariff as Food Prices Hurt Republicans
President Donald Trump has removed tariffs on Australian beef and numerous other agricultural products, reversing a policy he introduced just months ago amid growing political pressure over rising food costs.
The decision came through a wide-ranging executive order that exempts products including coffee, tea, tropical fruits, cocoa, bananas, oranges, tomatoes, beef, coal, petroleum, and uranium from reciprocal tariffs. The order is retroactive, allowing importers to claim refunds on tariffs already paid.
Trump originally imposed a 10% tariff on Australian beef on April 2, 2025, claiming unfair trade practices. "Australia bans American beef. Yet we imported $3 billion of Australian beef from them just last year alone. They don't want it because they don't want it to affect their farmers. And you know, I don't blame them, but we're doing the same thing," Trump said at the time.
However, the policy contributed to rising beef prices at a politically sensitive moment. Ground beef prices jumped 13.5% over 12 months to September, rising from $5.67 to $6.33 per pound, according to the US Bureau of Labour Statistics. Grocery prices have continued rising roughly in line with inflation, which reached 3% in 2025.
The political stakes became clear after Democrats won gubernatorial races in Virginia and New Jersey, raising Republican concerns that cost-of-living issues could become a major weakness. Affordability was central to Trump's campaign pledges in the previous election.
Australia exports more than $2 billion worth of beef to the US annually, with grass-fed beef making up 96% of exports in 2024. Australian beef exports surged in 2025 as US production fell due to drought and shrinking herd sizes, while tariffs on competitors like Chile, Argentina, and Brazil remained higher.
Industry analysts suggested the tariff removal simply returns the market to normal conditions. "With the 10% tariff being removed from everybody, that just means that everyone's back to where they were," said Patrick Hutchison of Gibraltar Strategic Advisory.
Peter Navarro, Trump's trade adviser and a strong tariff proponent, told News Nation that a taskforce meets weekly at the White House to formulate "an attack plan to deal with beef prices."
The administration also announced trade deals with Switzerland, Liechtenstein, and several South American nations, with Switzerland committing to invest at least $200 billion in the US.