Major suppliers cut beef exports to the U.S. in June

June saw a sharp decline in beef shipments from South American and Oceanian countries to the United States. The trade flow has been significantly affected by White House trade policy and the back-and-forth decisions that have made importers more cautious when making foreign purchases, given the possibility of new measures that could once again alter the rules of the game.

From Mercosur countries (excluding Argentina, for which June data is not yet available), about 21,500 tons were shipped to the U.S. in June—far below the nearly 60,000 tons exported in April, when shipments from the region peaked.

Exports from Australia also slowed in June, although to a lesser extent. Shipments fell 8% to around 35,000 tons. Australia, like New Zealand, must pay the 10% tariff imposed broadly by President Trump, while Mercosur countries face that same 10% plus an additional 26.4% for shipping out-of-quota—how most beef exports to the U.S. are conducted.

Given that U.S. beef import needs will remain high due to domestic production shortages —especially of lean beef— the expectation is that trade flows will regain momentum in the second half of the year.