Australian Trade Minister Don Farrell has raised concerns over potential US tariffs on Australian beef, which could lead to increased prices for McDonald’s meals in America. The uncertainty follows speculation that the Trump administration may impose additional tariffs on meat exports, creating anxiety among Australian farmers.
Farrell warned that any tariffs on beef imports would have significant repercussions for Aussie farmers and adversely affect fast food consumers in the US. He noted that a substantial portion of Australian beef is utilised in McDonald’s hamburgers, suggesting that price increases, whether by 10% or 25%, would directly impact hamburger prices, stating, “It doesn’t make any sense.”
Currently, Australian exporters can send about 448,214 tonnes of beef to the US at a zero tariff rate. As of late November 2024, beef exports from Australia to the US had already reached 353,000 tonnes, highlighting the importance of these exports to both economies.
Last week, Trump excluded Australian steel and aluminium from tariff exemptions, and trade allies in the EU have indicated they may retaliate by imposing tariffs on a variety of US goods, including beef and poultry. Despite these challenges, Farrell expressed optimism about exploring markets in other countries for Australia’s high-quality food and wine, emphasising a commitment to expanding trade relationships rather than retracting them.