US plan to cut beef import tariffs raises questions for NZ farmers

In 2025, the US was the largest market for New Zealand beef for the year, taking 173,056 tonnes, a drop of 5%. However, high prices saw the value increase by 17% to $2.1 billion. Photo / File

The New Zealand meat industry is likely to take a “watch this space” stance over the seemingly ever-changing landscape of America’s beef import trade.

The Wall Street Journal this week reported that the Trump administration was opening the way to import more steak and ground beef as part of a broader effort to address record-high beef prices.

The Journal said the administration was planning to temporarily reduce tariffs on beef imports as soon as Monday.

The move would suspend the annual tariff-rate quota – which applies a higher tariff rate after a certain level of beef imports are reached – on all beef-exporting nations, enabling more of the product to enter the US at lower tariff rates, the Journal said.

There have been no official announcements from the US Government on the issue.

US beef prices are very high because of tight supply arising from the US cattle herd sitting at a 75-year low.

As it stands, New Zealand beef destined for the US is effectively tariff-free for the first 213,000 tonnes exported there.

In the March quarter, New Zealand sent about 56,870 tonnes of beef to the US.

That was down about 5% on the same year-ago quarter, mostly because of lower New Zealand production, but values were up by more than 12%.

Against that background, it remains to be seen if New Zealand producers would gain any benefit from any new initiatives.

Producers may well suffer if changes result in the market being flooded with product by the likes of Brazil, the world’s biggest producer.

America is the biggest export destination for New Zealand beef, although China sometimes takes the number one slot.

In 2025, the US was the largest market for New Zealand beef for the year, taking 173,056 tonnes, a drop of 5%. However, high prices saw the value increase by 17% to $2.1 billion.

Demand for New Zealand beef in the US is strong, even when it was subject to last year’s 10% tariff, reflecting constrained US domestic supply.

The US Government rowed back on tariffs on beef exports late last year because of high prices.

Jamie Gray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.

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