U.S. to expand Argentina’s beef quota to 80,000 tons, including kosher and halal meat

The new tariff quota that the United States would grant to Argentina is expected to reach 80,000 tons, according to Politico and Bloomberg, which cited sources close to the negotiations. This would quadruple the current quota of 20,000 tons, which currently pays a 10% tariff. Beef imported outside the quota is subject to an additional 26.4% duty.

Sources from Argentina’s export meat industry indicated that, after several previous rumors, the 80,000-ton figure “is circulating with considerable strength,” although “officials neither confirm nor deny it and simply say we should wait for the official announcement, which they promise will bring good news once all details are finalized.” They also noted that at least part of this quota would correspond to beef processed under kosher and halal slaughter standards, and that the official announcement is expected “soon,” though no date has been confirmed.

U.S. cattle ranchers, grouped under the United States Cattlemen’s Association (USCA), reacted negatively to Donald Trump’s initial statements about increasing imports of Argentine beef to lower domestic meat prices. Their powerful lobbying efforts were instrumental in keeping Argentine beef out of the U.S. market for 17 years following the 2000 foot-and-mouth disease outbreak, even though the OIE had already declared Argentina free of the disease in 2003.

Perhaps in response to that backlash, a few days ago the U.S. Department of Agriculture (USDA) announced a plan to facilitate cattle grazing on federal lands, increase insurance subsidies, and reduce costs for small meat processors.

Although the expanded quota would be highly beneficial for Argentina, it would have no meaningful impact on U.S. beef prices. The United States consumes over 13 million tons (carcass weight equivalent) of beef annually.

As mentioned in the previous WBR edition, if Washington truly aims to reduce domestic beef prices by improving import access, it would need to eliminate the 10% tariff imposed on all imported beef since early April. That measure affects 2.2 million tons (carcass weight) — roughly 1.45 million tons shipment weight — representing almost 17% of total U.S. beef consumption. With an average import value of US$ 6,000–7,000 per ton, removing the tariff would save the supply chain over US$ 9 billion, a move that could genuinely impact U.S. domestic beef prices.