US Halts Mexico Livestock Imports, Tariffs Threaten Brazilian Beef Prices

The U.S. has closed its southern border to livestock imports from Mexico due to the detection of the New World screwworm fly, a flesh-eating parasite threatening cattle and other livestock, which has been found further north in Mexico than previously reported. This halt compounds challenges faced by U.S. meat producers as President Trump has imposed a 50% tariff on Brazilian imports, including beef, soybeans, and coffee, aiming to send a political message to Brazil while also influencing domestic markets. The tariffs are expected to raise beef prices in the U.S., as American food manufacturers rely heavily on Brazilian beef amid declining domestic cattle supplies caused by drought and the livestock import suspension from Mexico. Ranchers and butchers express concern over price hikes but some see potential benefits in shifting to locally sourced beef, which they believe offers better quality control. Analysts warn that the tariffs could effectively eliminate Brazilian beef imports due to prohibitive costs, forcing importers to seek alternative suppliers like Australia and Argentina. Overall, these developments signal tighter supply chains and higher costs for U.S. consumers on beef and other staples such as coffee and orange juice.