The Oval Office meeting, which had not been disclosed in advance, revealed JBS’s active role in shaping the Trump administration’s trade policy at a time when the company is facing an antitrust investigation by the Department of Justice, The Wall Street Journal reported.
Joesley Batista, co-founder and controlling shareholder of JBS, met with Trump in the Oval Office on August 20 and discussed how additional supplies of Brazilian beef could help lower prices if the administration eliminated the 26% import tariff, according to people familiar with the meeting.
The following day, Trump announced on social media a plan to import up to 300,000 tons of manufacturing beef over 90 days, with the stated goal of reducing consumer prices by 25%. It was not disclosed who arranged the meeting between Batista and Trump.
JBS’s ties to the Trump administration predated the meeting. Pilgrim’s Pride, the second-largest US chicken processor and majority-controlled by JBS, contributed US$ 5 million to Trump’s inauguration, making it the event’s largest donor.
For JBS, the opening of imports represents a direct opportunity to expand its share of the US market. In the first half of the year, Brazil shipped around US$ 1.5 billion worth of beef to the US, up 10% year-on-year.
The announcement, however, triggered an immediate backlash among cattle producers and Republican lawmakers from rural states, where the November midterm elections carry significant political weight.
Iowa Senator Ashley Hinson called the plan a bad idea, while Nebraska Senator Pete Ricketts warned that short-term policy changes are no substitute for long-term solutions.
The situation places JBS in a delicate position. The Department of Justice is investigating the four largest US meatpackers, including JBS, for possible anticompetitive conduct, although the companies deny any wrongdoing.
Source: The Wall Street Journal
