US tariff relief welcomed by Tasmanian agricultural sector

Tasmania’s beef sector has welcomed the lifting of US tariffs on Australian beef following the announcement by US President Donald Trump on November 14.

The US beef herd fell to a 50-year low in July due to drought conditions, and the ongoing border closure with Mexico has curbed the supply of feeder cattle, leading to the tariff rethink by the burger-loving country.

A 10 per cent tariff had only been in place since April 2, and while it squeezed margins for US importers, there was no real downside for Australian beef producers, as many other countries were hit harder.

America’s biggest beef supplier, Brazil, was slugged 50 per cent (now cut to 40 per cent plus 26.4 per cent additional tariffs), driving up demand for Australian and New Zealand beef while currency fluctuations also worked in Australia’s favour.

Australia’s beef exports to the US actually climbed by 17pc on the year , according to data from Australia's Department of Agriculture, Forestry and Fisheries.

Small Business, Trade and Consumer Affairs Minister Guy Barnett said producers have worked through a period of significant uncertainty in global markets.

“The decision provides confidence for our exporters, reinforces the strength of the Australia–US trading relationship, and recognises the high-quality, sustainably produced beef that Tasmania is renowned for,” he said.

“Eliminating these tariffs will help our producers remain competitive, expand their market share in the United States, and drive further value across our supply chain.

TasFarmers president Ian Sauer said that while the 10 percent tariff didn’t really have a significant impact, it’s good to have consistency and certainty in the long term.

“We have good biosecurity laws and it gives us access to a multitude of international markets so we will always get more money that most for our exported goods,” he said.

“Some countries see our biosecurity measures as a trade barrier, however TasFarmers and anyone in the local ag sector will say we’re not going to sell our biosecurity arrangement.

”We’re lucky to have, for instance, Powranna feedlot which sends a huge amount of beef into the export market and that first-quality beef is worth paying for.”