Australian beef tariffs shake US fast food prices

The United States, once a net exporter of beef, imported more than two million head of live cattle and 2.1bn kilograms of beef in 2024—a record high. The tariff will cost American consumers an additional $280m (US$180m) each year, according to Red Meat Advisory Council chair John McKillop.

“Australian beef is in an estimated 6 billion hamburgers consumed each year in the US,” McKillop said.

“The total impact to the American consumer as a result of tariffs on Australian red meat will be AU$600m.” 

Farmers for Climate Action, which represents more than 2,000 Australian beef producers, expressed disappointment at President Donald Trump’s decision to apply the tariff to Australian agricultural goods.

Natalie Collard, chief executive of the FCA, said the tariffs would affect American consumers more than Australian farmers.

“This tax on Australian farmers hurts Americans,” she said.

“These tariffs, or taxes, are not ‘reciprocal’; they're an unprovoked attack on an ally because Australia does not charge US businesses a tax to send products to Australia.”

America’s major fast food chains will take the biggest hit—in 2023, McDonald’s restaurants used 44,000,000 kilograms of Australian beef.

“The move means Americans will pay more for a Big Mac at McDonald’s, which is where much of Australia's beef exports end up,” Collard said.

Imported beef has helped offset rising prices in recent years. Average prices for beef mince have surged from $3.90 to $5.60 per pound since 2020, according to the US Bureau of Labour Statistics. 

Faced with a more challenging US market, Collard says Australian producers would need to prioritise other export markets.

“Now that the US is set to slap Australian beef farmers with tariffs, other export markets become even more important—and those countries are telling Australia they’ll add tariffs to our produce if we don't take strong action on climate like they are,” she said.

The European Union’s carbon border adjustment mechanism is cited as a key risk for exporters, with additional trade barriers looming unless Australia’s emissions policy is strengthened. China, too, has flagged potential trade hurdles linked to emissions and is accelerating its shift towards renewable energy.

“Strong climate policies and deep emissions reduction this decade are crucial to protecting Australian farmers, who rely so heavily on international trade,” Collard said. National Farmers Federation data shows Australian farmers export 70 per cent of their production.

Bipartisan opposition to the tariff in Australia continues, with agricultural representatives and industry groups advocating for policies that protect open markets and support climate resilience in agriculture.