5.Trump authorizes more beef imports in effort to lower prices

Trump authorizes more beef imports in effort to lower rates.

Key points

• While costs Tyson charged grocery stores, restaurants and other customers rose 12.1%, in its most recent quarter, concluded June 27, Tyson's beef volumes declined by 15.9% from a year ago.
• Total cattle and calf inventory was 94.2 million as of July 1, up less than 1% from a year earlier, marking the month's first growth since 2018.
• Editor's note: This report was updated with extra information from a White House official and with a statement from the National Cattlemen's Beef Association.
• Earlier this month, Tyson Foods cut its profit outlook, having posted an operating loss of $707 million in its beef division over the trailing nine months.
• Driving the news: Trump remarked on Truth Social that he had "concluded a deal to substantially lower the price of ground beef for working American families."

Trump authorizes more beef imports in effort to lower rates. Add Axios as your preferred source to. See more of our stories on Google.

He continued that "we have a commitment that this beef will be sold at 25 percent below current market prices."

"As we work to rebuild this herd and help our ranchers, for the next 90 days, the United States will allow up to 300, 000 metric tons of product for ground beef to be imported with no out of quota tariff, " he continued.

Zoom in: A White House official remarked the commitment came from foreign beef exporters and that the 25% discount would be passed along to U.S. Consumers.

Reality check: Exporters typically do not control retail rates – retailers do – so it was not immediately clear how the president can guarantee the discounts will flow through to consumers.

"This short-term action allows foreign imports to fill a gap to meet domestic ground beef demand at affordable prices, " the White House official remarked.

Friction point: A U.S. Cattle industry trade group remarked Friday it was "disappointed" by Trump's announcement, saying the move "sacrifices long-term stability for short term messaging."

"While America's cattle producers share the goal of keeping groceries affordable for consumers, flooding the market with government-subsidized, below-market beef is not the way to rebuild the American cattle herd, " Colin Woodall, CEO of the National Cattlemen's Beef Association, remarked in an official note.

State of play: The U.S. Cattle herd has lately kicked off to edge upward after years of decline, but it's still hovering near an all-time low, according to the Farm Bureau.

Zoom out: Critics say Trump's move Friday demonstrates how his trade war has had a detrimental effect on consumers.

"Trump is once again explicitly admitting his broad-based tariffs raise prices for Americans – and it's true from groceries to back-to-school shopping to buying a new home, " Alex Jacquenz, senior VP of policy, advocacy and research at Groundwork Collaborative, remarked in an official note.

What's next: Trump will sign an executive order authorizing the tariff-free imports within the next two weeks, the White House official remarked.

In short, 5.Trump authorizes more beef imports in effort to lower prices is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.