Australian beef exports to South Korea have exceeded 90% of the country's annual safeguard quota of 196,000 tonnes, putting Australia on track to trigger a tariff increase from 5.3% to 24% for the remainder of the year, likely by mid-July.
According to the US Meat Export Federation (USMEF), the development is already prompting Korean retailers and restaurants to increase purchases of US chilled beef.
USMEF Vice President for Asia Pacific Jihae Yang said importers accelerated purchases of Australian beef earlier this year in anticipation of the safeguard being triggered, with nearly 90% of Australia's shipments through May consisting of frozen beef. That has limited the availability of chilled Australian product, creating additional opportunities for US chilled beef.
Yang said the greatest impact will be on Australian chilled Wagyu and grain-fed beef, allowing US beef to gain market share in retail channels. Major supermarket chains and e-commerce platforms have already begun securing supplies of US chilled beef ahead of promotional campaigns expected once the safeguard takes effect.
Since January, US beef has enjoyed duty-free access to South Korea under the US-Korea Free Trade Agreement. Although US beef remains subject to its own annual safeguard mechanism, the threshold is significantly higher at 354,000 tonnes, and that safeguard will be eliminated in 2027.
Source: Beef Magazine
