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Trump Demands Cattle Ranchers Lower Prices, Deepening Feud

(Bloomberg) -- President Donald Trump attacked US cattle ranchers over their criticism of his plan to slash record beef prices by importing more meat from Argentina, deepening a quarrel over his trade policy with a group of reliable supporters.

Trump on Wednesday said that cattlemen should be grateful for his tariffs, saying they have helped boost their profits, while also imploring them to lower the cost of their products.

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“If it weren’t for me, they would be doing just as they’ve done for the past 20 years — Terrible! It would be nice if they would understand that,” the president posted on social media. “They also have to get their prices down, because the consumer is a very big factor in my thinking, also!”

The dust-up illustrates the dilemma facing Trump as he ratchets up import taxes to their highest levels in a century. While the duties have helped protect some American industries, they have also helped drive up prices for consumers — cutting against his campaign promise to tackle inflation.

Trump’s plan to boost Argentine beef imports has been met with scorn by ranchers, who have said it could crush their industry, while experts say it would do little to lower prices. Argentine beef accounts for only about 2% of US beef imports and increasing supplies may only have a marginal effect on what consumers pay.

“Market participants know that increased imports from Argentina will reduce demand for domestic cattle, and that’s why cattle markets have responded negatively to the president’s plan,” Bill Bullard, chief executive officer of the Ranchers-Cattlemen Action Legal Fund, United Stockgrowers of America, said in a statement Monday. “President Trump should direct his antitrust enforcers to determine the extent to which the alleged unlawful price fixing has contributed to today’s higher beef prices.”

US beef prices have skyrocketed to record levels, challenging Trump’s pledge to make groceries more affordable. Booming imports have fallen short of offsetting a severe domestic cattle shortage. Tariffs totaling 50% on imported goods from Brazil, the world’s largest beef exporter, is tightening supplies further.

Agriculture Secretary Brooke Rollins said Tuesday the administration will soon roll out a “big package” intended to bolster US beef production as consumers struggle with a surge in prices.

“What we are going to do is to incentivize to open up new lands, to make it easier to become a rancher, to build more processing plants around the country, so there aren’t just a handful in the middle of the country,” Rollins said in an interview with CNBC.

She added that the US had over the years sent a lot of its beef production to countries like Brazil, and that now was the time to reverse course, saying “We’ll be able to begin to move the onshoring of beef back to America.”

--With assistance from Laura Curtis.