American farmer and rancher Steven McBee Jr. joined ‘Varney & Co.’ to discuss elevated beef prices, the cattle shortage, the reopening of livestock imports, and artificial intelligence’s growing impact on farmland values.
President Donald Trump on Wednesday formally increased the amount of foreign beef permitted to enter the United States at a reduced tariff rate by 300,000 metric tons, advancing an initiative aimed at improving beef affordability for American consumers.
The temporary increase applies to lean beef trimmings under the U.S. beef tariff-rate quota and will be released in three 100,000-metric-ton tranches beginning September 1, according to a White House proclamation.
Trump indicated the move is designed to expand the supply of ground beef and reduce costs for American consumers, particularly as the U.S. cattle herd remains near historic lows and domestic beef production is projected to decline this year.
The proclamation implements a policy Trump previewed last week, when he announced plans to permit up to 300,000 metric tons of additional foreign beef into the country as part of an effort to ease grocery expenses.
TRUMP ALLOWS 300,000 METRIC TONS OF TARIFF-FREE BEEF IMPORTS IN BID TO CUT PRICES, DRAWING RANCHER BACKLASH
President Donald Trump signs an executive order in the Oval Office. (Bonnie Cash/UPI/Bloomberg via Getty Images / Getty Images)
The formal action follows opposition from Republican lawmakers in cattle-producing states, who have cautioned that expanding foreign beef imports could disadvantage ranchers working to rebuild the U.S. herd.
The administration, however, maintains that domestic supplies remain inadequate to meet demand at reasonable prices.
The Department of Agriculture projects U.S. beef production will decrease by approximately 4% this year compared with 2025, according to the proclamation. The White House attributed the supply constraints partly to restrictions on live cattle imports from Mexico implemented to prevent the spread of New World Screwworm, as well as drought and wildfire conditions affecting cattle-producing regions.
The U.S. cattle herd has declined to its lowest level in 75 years, though USDA data cited by the administration indicates the herd began showing early signs of recovery in July.
TRUMP’S FOREIGN BEEF PUSH TO CUT GROCERY COSTS SPARKS GOP REVOLT FROM RANCHING COUNTRY
Beef on display at a grocery store in Chicago. (John Gress/Corbis / Getty Images)
The administration indicated USDA forecasts domestic beef consumption will increase through the remainder of 2026, adding further pressure to supplies.
The latest action follows a separate measure in February that increased the 2026 quota for lean beef trimmings from Argentina by 80,000 metric tons. The new 300,000-metric-ton increase does not affect that allocation and instead applies to “other countries or areas.”
The first 100,000 metric tons will be available from September 1 through September 30, followed by another 100,000 metric tons from October 1 through October 30. The final tranche will open October 31 and remain available until the quota is filled or November 30, whichever occurs first.
The administration is also linking the expanded quota to pricing requirements.
The U.S. cattle herd has fallen to its smallest level in 75 years. (Jonne Roriz/Bloomberg/Getty Images / Getty Images)
The agriculture secretary and U.S. trade representative are directed to monitor whether beef entering under the additional quota is sold at prices 25% below the market price for lean beef trimmings.
If that discount does not materialize, the officials must notify Trump, who could eliminate the remaining increase.
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