President Donald Trump recently revealed to the press that his administration is contemplating the importation of beef from Argentina.
This move is aimed at reducing the cost of beef domestically while simultaneously aiding Argentina's floundering economy, which Trump characterized as being in a dire state.
According to Breitbart, the President dismissed concerns that importing Argentine beef would pose an unfair competition to American cattle ranchers. He also refuted suggestions that Argentina was exploiting American goodwill, portraying the South American nation as a country "fighting for its life" rather than reaping undue benefits from the United States.
"The only price we have that's high is beef and we'll get that down," Trump assured reporters aboard Air Force One. He further stated, "One of the things that we're thinking about doing is beef from Argentina."
In response to potential objections from the American beef industry, Trump emphasized, "Argentina is fighting for its life young lady, you dont know anything about it, theyre fighting for their life."
Trump underscored Argentina's desperate economic situation, stating, "They have no money, they have no anything, theyre fighting so hard to survive. If I can help them survive in a free world." He also expressed his admiration for Argentina's President Javier Milei, a right-wing libertarian, and dismissed the notion that Argentina was thriving.
Trump further explained the potential benefits of importing beef from Argentina, stating, "We would buy some beef from Argentina; if we do that that would bring our beef prices down." He stressed that the volume of imported beef would not be substantial.
In his remarks, Trump also noted a rightward shift in popular sentiment across South America over the past decade, citing not only Milei's election as the world's first libertarian president but also conservative victories in countries like Paraguay and Bolivia.
The high cost of beef in the United States is largely due to market disruptions over the years, most notably a significant decrease in the number of beef cattle. The U.S. Department of Agriculture (USDA) recorded the lowest inventory level in the country since 1962 in 2023, a situation experts attribute to years of detrimental agricultural policies.
James Mitchell, a researcher at the University of Kentucky, explained, "There is a pretty substantial biological lag in the beef supply chain. What consumers experience at the grocery store is a product of what cattle producers were going through a year or two ago. It takes about two years for a new calf to become the steak on your dinner plate."
Trump had previously highlighted the issue of high beef prices, stating, "We are working on beef, and I think we have a deal on beef." He acknowledged that the price of meat was "higher than we want it" but expressed optimism that it would be "coming down pretty soon."
The U.S. Cattlemens Association issued a statement following Trump's remarks, pointing out that the rise in beef prices was also due to the increased cost of goods necessary for cattle rearing. "Ranchers are facing historic highs for feed, fuel, labor, and land and those costs have risen far faster than beef prices on grocery shelves," said Justin Tupper, President of the U.S. Cattlemens Association. He also noted that cattle inventory had reached a 75-year low nationwide this year.
Despite its economic woes, Argentina is a significant agricultural power globally and ranks fifth in beef exports (America is third). After two decades under socialist presidents, the country now heavily relies on China to accept many of its agricultural exports, including beef.
President Milei campaigned on shifting away from this foreign policy, which aligned Argentina with China, Russia, and Iran, among other rogue states, and instead prioritizing alliances with America and Israel.
Last week, Milei visited the White House to finalize negotiations for a $20 million currency swap, significantly increasing Argentina's supply of U.S. dollars. Both Milei and Trump have publicly supported each other on the global stage, with Milei even presenting Trump with a framed letter nominating him for the Peace Prize.
Trump expressed his willingness to assist Milei in stabilizing Argentina's economy, which has been ravaged by socialism. However, he indicated that his support would be contingent on the political landscape, stating, "Our approvals are somewhat subject to who wins an election, because if a socialist, or in the case of New York, a communist wins, you feel a lot different making an investment."
Argentina's national bank confirmed the currency swap agreement on Monday. "The objective of this agreement is to contribute to the macroeconomic stability of Argentina, with a special emphasis on preserving the stability of prices and promoting sustainable economic growth," the Central Bank of the Argentine Republic (BCRA) said in a statement. The currency swap is not a gift or a conventional loan to Argentina; it is a time-bound operation aimed at bolstering the overall economy.
Before Milei's presidency, his predecessor Alberto Fernndez sought similar currency swaps but with leftist regimes, aiming to expand the use of the Chinese yuan for trade with partner countries.
During his White House visit, Milei expressed his gratitude and support for President Trump's foreign policy, especially in contrast to that of predecessor Joe Biden. "The U.S. had a policy towards this region [Latin America] that neglected its allies and tried to seduce those who were its adversaries," Milei explained.
"With the arrival of [Secretary of State] Marco Rubio, who understands the cultural battle perfectly, knows the case of Cuba, they decided to change their focus and today reward allies."
Milei further stated, "There is a clear international policy from Trump about how he sees the world order. He is willing to lead the region and considers Argentina an ally."
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