Red meat sector disappointed by US tariffs

This morning, US President Donald Trump announced a 10% tariff on all goods entering the United States from New Zealand. 

Meat Industry Association chief executive Sirma Karapeeva says the sector needs time to fully assess the implications of the announcement.

"However, New Zealand exporters are highly responsive to global market dynamics and maintain strong commercial relationships that enable us to adapt and remain flexible," Karapeeva says. 

She says New Zealand has a robust trade strategy, built on well-established positive relationships across over 100 markets.

"Tariffs distort trade and reduce market efficiency, ultimately forcing exporters and producers to accept lower prices while leaving consumers with fewer choices and higher costs," she adds.

Karapeeva says the United States is a key importer and exporter of beef. This means the announcement will likely impact the global beef market and exporting countries could re-direct their products to markets where New Zealand operates.

"Furthermore, with the US beef herd at historically low levels and record domestic beef consumption, we are still expecting high demand from the US for beef, despite the tariff measures," she says.

Importantly, Karapeeva says New Zealand's red meat exporters have undertaken significant planning to mitigate any potential disruptions, maintain market positions, and navigate shifts in global trade patterns.

Meanwhile, Beef + Lamb New Zealand chief executive Alan Thomson says it is unfortunate that the US will be imposing tariffs on New Zealand exports.

“It is too early to tell what the ultimate impact of this will be on farm-gate prices," Thomson says.

However, he says it is positive to see that there is strong demand globally for red meat at the moment.

“Our sector is resilient, and our exporters are working hard to find solutions, but trade barriers like this make it tougher for farmers to get a fair price for the high-quality meat they produce," he concludes.