US market remains sluggish amid “uncertainty”

Trade with the US showed little change last week. In fact, news from US customs added more concern, with a circular stating that meat shipments involving transshipments after April 5 will face the additional 10% tariff.

“There was a lot of meat on the water on April 2 (the day the tariff was announced), which should have been exempt. But if that meat was transshipped after April 5, the extra tariff applies,” explained the source. He said this “added even more uncertainty” and dampened the market as importers are unsure of the final cost they’ll pay.

However, there’s also “another reality” in the US market involving “two very strong players” with regular programs. “These buyers continue purchasing because they factor the 10% in their costs. They can’t stop buying,” the source said. One informant added that if “US consumption holds steady,” there will clearly be a “beef shortage by year-end.”