JBS billionaire's lobbying preceded Trump's 26% beef tariff cut

Joesley Batista, co-owner of meatpacker JBS, met Trump on Aug. 20 to argue that Brazilian beef supply could tame U.S. prices if he dropped a 26% import tax, the Wall Street Journal reported. A day later, Trump announced on social media a plan to temporarily allow more foreign beef imports, saying the products would be sold at a 25% discount to market prices.

"Short term policy shifts do not equal long term solutions," Pete Ricketts, the Nebraska senator running for re-election, said on X, reflecting the backlash from Republican lawmakers in cattle-producing states. The National Cattlemen's Beef Association, the largest trade group for ranchers, said government intervention will only hurt ranchers and prevent long-term stability in the beef industry.

Trump's plan calls for up to 300,000 metric tons of lean beef trimmings to be imported over a 90-day period without a tariff — roughly 2 percent of the nation's annual beef consumption. Brazil sent about $1.5 billion worth of beef to the U.S. through the first six months of this year, up 10 percent from a year earlier, according to Agriculture Department data. Feeder cattle futures, the price ranchers receive from feedlots, have fallen about 9 percent over the past month.

For JBS, expanded U.S. market access would deepen its footprint in the world's largest beef market. The company, which employs about 280,000 people across more than 20 countries, listed on the New York Stock Exchange last year. Pilgrim's Pride, the nation's second-largest chicken processor and majority controlled by JBS, contributed $5 million to Trump's inauguration — the largest single donor.

May Tariff Quota Plan Shelved After Outcry

The meeting between Batista and Trump was not the first time the administration weighed easing beef import restrictions. In May, the White House floated a plan to suspend a tariff-rate quota applied to beef-exporting nations, but the proposal was shelved following an outcry from ranchers, Agriculture Secretary Brooke Rollins, and some congressional Republicans, the Journal reported.

The latest push comes as rising beef prices have become a political liability for the administration. The supply shortage stems from a continuing decline in cattle herds on American pastures, which has driven livestock prices to record highs and pushed ground beef costs up at grocery stores and fast-food chains. A larger supply of lean meat from South America could temporarily lower those prices, but analysts warn it could also discourage ranchers from rebuilding herds, prolonging the shortage.

Ranchers Push Back as Cattle Futures Slide 9%

The decision has created tension within the Republican coalition. Iowa Rep. Ashley Hinson, the Senate GOP nominee in her state, called the plan a bad idea, while the Justice Department continues to investigate the top four U.S. meatpackers — including JBS — over potential anticompetitive behavior. The companies have denied wrongdoing and are struggling financially as cattle become more expensive to process in the U.S., with Tyson Foods and JBS closing plants after losing hundreds of millions of dollars.

Brazil's government welcomed the development. President Luiz Inácio Lula da Silva held an 80-minute call with Trump that touched on tariffs, organized crime, and global conflicts, according to a statement from Brasília. Brazil is the world's largest producer of beef.

The 90-day tariff waiver is set to begin immediately, with the administration framing it as a temporary measure to address consumer prices. Whether it extends beyond that window will depend on whether cattle prices stabilize and whether the political pressure from rural constituencies outweighs the consumer relief.

This article is for informational purposes only and does not constitute investment advice.