
Donald Trump outlining his reciprocal tariffs in April.
TARIFFS remain on Australian sheep meat imports into the United States, despite US president Donald Trump flagging removal of duties on most beef imports on Saturday.
The president signed executive orders removing reciprocal tariffs on a range of agricultural goods including most beef imports, most of which were applied as part of his ‘Liberation Day’ tariff impositions made in June ago.
The continuance of the 10pc tariff on Australian sheep meat imports into the US has sparked little reaction from the industry here.
Global AgriTrends analyst Simon Quilty said although the US sheep meat import tariff remains at 10pc, Australia’s main competitor New Zealand is paying a 15pc tariff.
“So Australia maintains its comparative advantage and the truth is that when these tariffs were introduced back in March the lamb sector did not blink.
“Lamb prices (in Australia) rose that week and have continued to rise ever since, and wholesale and retail prices have continued to rise in America.”
He said since the start of this year he estimated the average price for imported lamb is up at least 15pc, and on certain items is up 60pc – for hind shanks.
Mr Quilty said the reason for the dropping of tariffs on most beef imports is that over the last three months ‘beef inflation’ has been a great concern in the US White House.
“This has been a genuine attempt by the Trump administration to try to stem beef inflation in America.
“I personally do not think it will succeed.”
Mr Quilty said a 40pc duty remains on Brazilian beef imports into the US, plus the 26.4pc incurred at the start of the year if the country fulfills its 65,000 tonne quota.
“So right now that puts Brazil at 66.4pc duty for entry this year compared to Australia which is now at zero.”
Mr Quilty said there appears to be no concern in the US about ‘lamb inflation.’
“Only because it is not on their radar – less than two percent of overall meat consumption in America is lamb and it is simply not enough to get the attention it deserves.”
Total fresh meat sales (chicken, pork, turkey, goat, lamb, mutton and beef) in the US in the 12 months to September were valued at $79.2 billion, with beef making up 66pc and fresh lamb about 1.2pc.
“So that’s why it (lamb) is not on the radar.”
Sheep Producers of Australia chief executive officer Bonnie Skinner said SPA has not been advised of any specific reason for the decision not to remove the tariff on Australian lamb and sheep meat.
“What we do know is that the US remains a strong and important customer for Australian lamb and sheep meat,” she said.
“SPA will continue to engage with the Australian Government to ensure the interests of Australian sheep meat producers are front and centre in trade discussions.”
A Department of Foreign Affairs and Trade spokesperson said imports of Australian sheep meat into the United States remain subject to the 10 per cent ‘reciprocal tariff’.
“The Australian Government has consistently made the case for open trade with the United States at all levels.
“We maintain that tariffs imposed on Australian goods are unjustified and unwarranted, and continue to advocate for their removal,” the spokesperson said.
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