TEN per cent tariffs on Australian products heading to the United States are disappointing for local producers but will not hurt as much as first feared, with other countries facing similar penalties.

Dueran Pastoral Company farm manager Matthew Vasey believes the baseline tariff with no ban on Australian produce, will have nominal impact.

“All competitors have similar tariffs, so US volume changes should be minimal,” he said.

What is of concern is US-imposed tariffs impacting Australian trade partners like China.

The United States is Australia’s largest red meat export market worth over $6 billion dollars in 2024, and accounting for almost one third of our total global meat exports.

However, China, Japan and South Korea are our next major markets, worth $3.9 billion, $2.6 billion and $2.5 billion respectively.

With the United States government threatening tariffs of well over 100 per cent on China, and - until a recent backflip by the US president - of 24 per cent on Japan and 25 per cent on South Korea, Mr Vasey perceives tariffs could impact these economies which may result in a flow-on effect.

There has been speculation that countries may in fact shift away from US beef in retaliation, with Australia already benefitting from an increased demand from the Chinese market.

However there is no commitment this will be ongoing and with the beef trade sitting within such a highly politicised global environment, market flexibility and diplomatic awareness are paramount.

At a local level for livestock producers in the shire and the state, any immediate effect of the tariff on pricing will be negated by the flooding in Queensland and a good autumn break in New South Wales, Mr Vasey said.

“Slaughter cows made $3.64 per kilo live weight in North East Victoria first week of April,” Mr Vasey said.

Considered good to very good - especially given recent market trends - Mr Vasey said there is positive pricing for red meat on the domestic market for both grass and grain-fed cattle.

And with lightweight Angus weaner steers also drawing consistently high prices, there is demonstrated producer confidence in the direction of the market.

“Lamb also looks strong with prices of $8.50 plus expected for winter,” he said.

“This is considered high percentile pricing for winter, regardless of the end market – whether it be in the US or elsewhere.

“As such we have confidence that the impact of the 10 per cent US tariff should be minimal.”

Michael Whitehead, Executive Director of Food, Beverage and Agribusiness Insights at ANZ, said the 10 per cent tariff – which also applies to other major beef suppliers like Brazil, New Zealand and Argentina – is unlikely to immediately damage Australia’s competitive position in the US market.

“Given the tariff applies equally to our main export rivals, Australia retains a strong foothold due to our consistent quality, clean production standards and importer preference,” Mr Whitehead said.

It is consumers in the United States who will feel the pinch more than local producers, with the US domestic market still recovering after years of reduced production and mass de-stocking due to drought.

Drought along with other pressures has caused the US herd to steadily shrink since 2019, and while consumer demand for beef is at a record-high in the country Australian beef has been filling this gap.

“US beef producers can’t meet American domestic demand and Australia is the preferred supplier to fill the shortfall of high-quality grassfed steaks,” said Cattle Australia Chief Executive, Dr Chris Parker.

“Our lean beef exports are also crucial – it is blended with local fatty trim to create the hamburgers that every American knows and loves.

“Imposing tariffs on Australian beef disregards the mutually beneficial role of each country’s supply chain, and the effects will be most acutely felt by American consumers and industry.

“While we value the US market and our relationship with its beef industry, Australian producers should take comfort from our market diversification and the overall global demand outlook which remains very strong for Australian beef.”