Beef Prices May Rise as Canadian Ranchers Shrink Cattle Herds Fearing Trump Tariffs
Canadian cattle herds are shrinking due to the threat of U.S. tariffs, leading to a decrease in beef exports and an increase in prices for ground beef in U.S. cities. The smallest U.S. cattle herd in 74 years and the smallest Canadian herd in 36 years have resulted in higher prices globally, with global beef prices up 34% according to the International Monetary Fund. This is due to a disruption in the traditional flow of cows, calves, breeding stock, slaughter animals, and beef-in-boxes across the U.S.-Canada border.
- The tightening of Canadian cattle herds highlights the vulnerability of global supply chains to sudden changes, which can have far-reaching consequences for industries that rely on timely delivery of raw materials.
- Will the U.S. government's willingness to accept higher prices for imported Canadian beef lead to an increased demand and stabilize the market, or will consumers continue to opt for domestic beef options?