How Donald Trumps tariffs will affect YOU at the checkout
Donald Trumps new 10 per cent Liberation Day tariffs on all Australian exports to the US could end up costing local consumers more.
Donald Trumps new 10 per cent Liberation Day tariffs on all Australian exports to the US could end up costing local consumers more.
The American President slammed Australia for refusing to relaxing its strict biosecurity measures to get a possible exemption to new reciprocal tariffs.
Australia bans — and theyre wonderful people, and wonderful everything — but they ban American beef, he said.
Yet we imported $US3 billion of Australian beef from them just last year alone.
They wont take any of our beef.
They dont want it because they dont want it to affect their farmers and you know, I dont blame them but were doing the same thing right now starting at midnight tonight, I would say.
A kilogram of rump steak at Woolworths is now selling for $28.
But the Australian Food Sovereignty Alliance, representing 350 small-scale farmers, fears rump steak will end of costing Australian consumers $56 at the supermarket.
Donald Trump s new 10 per cent Liberation Day tariffs on all Australian exports to the US could end up costing local consumers more.
Spokeswoman Tammi Jonas, an organic beef cattle producer from Daylesford in Victoria, said the American tariffs on agricultural imports would see more countries buy Australian beef to avoid trading with the US.
We already know theres high demand for Australian beef around the world and I think thats just going to get higher, she told Daily Mail Australia.
In a global supply crunch like this, we could see rump steak climb past $50 per kilogram.
Thats not a family dinner - thats a premium luxury.
Dr Jonas said higher export prices would see less Australian meat sold to domestic consumers.
I would say theres a strong likelihood of that, yes, she said.
And even if we still have enough beef sold within Australia, the prices are certain to go up.
Whenever youre in those global markets, you roll with the volatility and if they can get a really high price overseas, theyre not going to charge less for domestic sales.
A kilogram of rump steak at Woolworths is now selling for $28 (pictured is a Woolworths supermarket)
But Angus Gidley-Baird, a senior analyst in animal protein with RaboResearch, said more expensive steak at the supermarket was unlikely, given the strong supply of Australian beef with the recent rainfall.
We produced record volumes of beef last year, I dont see why there would be a shortage in the domestic market that would cause prices to rise, he told Daily Mail Australia.
The exports are effectively our markets that we sell the additional production into.
Australia has been slapped with blanket 10 per cent tariffs, in line with the UK, Singapore, Brazil and Chile.
But China is being hit with a much higher 34 per cent tariff, compared with 25 per cent for South Korea and 24 per cent for Japan.
Meat and Livestock Australia data showed the US was Australias biggest market for beef exports in 2024, putting it well ahead of Japan, South Korea and China.
Of the beef sent to the United States, 96 per cent of it was the leaner, grass fed variety that was either chilled or frozen.
The Americans have been in the grip of a drought, and most of their beef is fattier, grain-fed.
South American beef exporters Argentina and Brazil are also dealing with a lack of rainfall, which means demand for Australian beef would continue to be strong.
Mr Gidley-Baird said the Americans, who produced fattier, grain-fed beef, would still need the leaner, Australian grass-fed beef to make hamburger patties, regardless of import tariffs.
Australia has been slapped with blanket 10 per cent tariffs, in line with the UK, Singapore, Brazil and Chile. But China is being hit with a much higher 34 per cent tariff, compared with 25 per cent for South Korea and 24 per cent for Japan
The Australian Food Sovereignty Alliance fears rump steak will end of costing Australian consumers $56 at the supermarket. Spokeswoman Tammi Jonas (left) said the American tariffs on agricultural imports would see more countries buy Australian beef to avoid trading with the US
The US still continues to need imported product because theyre not producing as much themselves, he said.
Theyll still need Australian beef - the drought, its getting better in the US but theyve liquidated their herd and production volumes are down.
What Australia sends to the US complements their production system over there in that it balances out the fatter product theyre producing for hamburger production.
They need the product and were one of the biggest suppliers of it - me being rational would still say that they would still buy it.
At the margins, strong American demand for grass-fed beef had pushed up prices for Australian lean mince, now selling for $15.50 a kilo at Woolworths.
The US market has been very strong - its demanding a fair amount of product which is putting a bit of pressure on mince prices, lean product prices, Mr Gidley-Baird said.
The Australian Food Sovereignty Alliance sees mince prices more than doubling to $36 a kilo.
But Dr Jonas predicted possible tariffs of up to 25 per cent on Australian beef would see American demand plunge, despite the fact they are in drought with an undersupply of grass-fed beef.
I think with a 25 per cent tariff they wont be able to afford it - Americans are in as big a cost-of-living crisis as Australians are and they cant handle a 25 per cent tariff on top of the higher meat price of imported Australian beef, she said.
The Australian Food Sovereignty Alliance didnt do specific economic modelling on Australian beef prices, as a result of the Trump tariffs on agriculture coming into effect on Thursday.
But it argued Chinas African swine flu in 2019 led to a doubling of pork prices, as supply fell by 40 per cent.
The alliance campaigns against agribusiness giants like JBS Foods Australia, which owns feedlots and abattoirs.
The local farmers like us are losing access to the facilities to slaughter, Dr Jonas said.
While that sounds like a good thing for Australia - when we think, "We can export more" - the reality of that is very few people profit from that higher export.
The Trump Administrations tariffs of up to 25 per cent on agricultural imports are coming into effect on Thursday, along with tariffs on pharmaceutical products.
If its a large tariff but applied to everyone, our competitive position remains the same, Mr Gidley-Baird said.
They follow 25 per cent tariffs on steel and aluminium, introduced on March 12.