president donald trump On Friday, he signed an executive order to expand beef imports from Argentina as consumers face higher prices amid supply constraints affecting the US cattle industry.

Trump’s order implements a trade framework he reached with Argentina in November that aims to increase beef imports to help mitigate the increase beef prices that has happened in recent years.

In 2018-19, ground beef prices were below $4 a pound, but they began to rise during the pandemic and have been above $5 a pound since June 2023, while continuing to rise, reaching about $6.69 a pound in December, according to data from the Bureau of Labor Statistics (BLS). Sirloin steaks cost about $8.50 a pound in 2019, but have topped $11 a pound since the summer of 2023 and reached $14.02 a pound in December.

Over the past year, ground beef prices have risen 15.5% through December, while the cost of a steak has risen 17.8%, according to the BLS’s Consumer Price Index (CPI). A further reading of CPI inflation is due later this week when January data is released, although high beef prices are expected to persist due to domestic supply challenges.

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The price of steaks and ground beef has increased greatly over the past year. (Justin Sullivan/Getty Images)

ranchers have reduced their herds due to drought and wildfires that have affected key cattle regions in recent years, leaving the national livestock inventory at its lowest level in 70 years. Although some ranchers have begun to slowly rebuild their herds, it takes at least two years to raise adult cattle.

General costs for livestock farmers they have also gone up, with a higher trend in the costs of food, labour, fuel and equipment.

In addition, livestock imports from Mexico have been restricted due to the New World snail worm, a parasitic infestation that can affect livestock.

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American consumers have faced a significant increase in beef prices in recent years. (Ronald Schemidt/AFP via Getty Images/Getty Images)

According to the announcement of the Trump administration, the tariff quota for imports of lean beef cuts from Argentina will increase by 80,000 metric tons by calendar year 2026.

The additional imports it will be allocated entirely to Argentina and will be published in four quarterly installments starting on February 13.

The White House said in a fact sheet that the action is intended to increase supply and make ground beef more affordable for American consumers, citing an 8.6 percent decline in domestic beef inventory since 2020.

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U.S. cattle inventory is at its lowest level in 70 years. (Agustín Marcarian/Reuters)

The announcement sparked pushback from the country’s largest livestock industry group, which questioned whether increased imports would give the price relief the administration promises.

“While we fundamentally disagree with the premise that increased imports can lower beef prices, the NCBA is encouraged that the Trump administration takes the necessary steps to address the market access challenges for U.S. beef in Argentina,” said Kent Bacus, executive director of international trade and market access for the National Cattlemen’s Beef Association (NCBA).

Bacus warned that Argentina’s history with foreign animal diseases raises concerns about expanding imports without stronger safeguards.

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“Given Argentina’s problems with foreign animal diseases, the NCBA remains concerned that expanding imports from Argentina without increased inspection protocols and updated audits could put American consumers and our livestock herd at unnecessary risk,” Bacus said.

Jasmine Baehr of FOX Business contributed to this report.