Donald Trump backflips on US tariffs to slash cost of Australian beef

The Australian government has welcomed US President Donald Trump’s decision to drop tariffs on Aussie beef.

In a statement, the White House confirmed it would cut tariffs on food and agriculture products, including Australian beef, as they look to tackle growing cost-of-living pressures in the US.

In a wide ranging executive order signed by the US President, coffee, tea, tropical fruits, coca, bananas, oranges, tomato and beef will all be excluded from tariffs.

Trade Minister Don Farrell welcomed the removal of tariffs on Australia’s “world-class” exports.

“The Albanese Government's position has been consistent and clear,” he said.

“Tariffs are an act of economic self harm and ultimately hurt American consumers. We maintain our position that tariffs on any Australian products are unjustified and continue to advocate for their removal.”

The executive order overturning the tariffs is retroactive, which will mean importers will get a refund on the levy they have already paid.

“Today, President Donald J. Trump signed an Executive Order modifying the scope of the reciprocal tariffs that he first announced on April 2, 2025. Specifically, certain qualifying agricultural products will no longer be subject to those tariffs,” the White House statement said.

Mr Trump’s backdown comes as he faces pressures to reduce cost-of-living pressures after making inflation the centrepiece of his 2024 election campaign.

While the tariffs will be removed, it might not help Australia’s $2bn beef industry, which has surprisingly benefited from the levies.

According to previous comments to NewsWire by Commonwealth Bank sustainable and agricultural economist Dennis Voznesenski, Australia unexpectedly gained from soaring beef prices as we faced smaller tariffs and were the only country with enough stock to feed the US.

“Mexico had a flesh eating bacteria called new age screw worm with the US closing the border to Mexico … Canada exports to the US are down 25 per cent from last year as they rebuild stock and as of August 1 President Trump plans to put a 50 per cent tariff on Brazil.”

That made Australia the only viable supplier facing a 10 per cent levy.

The backdown follows a wide ranging speech on April 2, when President Trump announced his sweeping tariff policy, Australia’s beef exporters were singled out.

“Australia bans – and they’re wonderful people, and wonderful everything – but they ban American beef,” President Trump said.

“Yet we imported $3bn of Australian beef from them just last year alone.

“They won’t take any of our beef. They don’t want it because they don’t want it to affect their farmers. And you know, I don’t blame them, but we’re doing the same thing right now starting at midnight tonight.”