Grilled Beef Burger
Australian beef farmers and industry groups stated Thursday that they would pass on the cost of U.S. tariffs to American consumers, increasing prices for hamburgers and steaks.

Australian Prime Minister Anthony Albanese has expressed strong disapproval of U.S. President Donald Trump's decision to impose a 10% tariff on Australian goods, calling it "not the act of a friend."

However, Albanese ruled out imposing similar tariffs on the U.S. in response, emphasizing that such a move would raise costs for Australian families, Reuters reported.

Trump has singled out Australian beef exports during a speech confirming a 10% tariff on all Australian products. Following the move, Australia plans to engage in negotiations with the U.S. to lift the tariffs, avoiding the need for a formal dispute resolution process under the two countries' Free Trade Agreement.

"The (Trump) administration's tariffs have no basis in logic and they go against the basis of our two nations' partnership. This is not the act of a friend," Albanese told reporters. "We will not join a race to the bottom that leads to higher prices and slower growth."

With the Australian parliamentary elections approaching on May 3, Opposition Liberal Party leader Peter Dutton criticized Albanese for failing to secure a tariff exemption for Australia. Dutton argued that Australia should use its valuable, critical minerals and defense alliance with the U.S. to quickly reach a deal with Trump.

Albanese, however, defended his approach, stating that Australia had utilized all aspects of its diplomacy, including seeking advice from sports star Greg Norman, a close ally of Trump.

Beef and biosecurity issues

One major issue in the tariff dispute is Australian beef. Trump specifically mentioned Australian beef in his announcement, noting that U.S. imports of Australian beef surged last year to AU$4 billion due to a decline in U.S. beef production.

"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," Trump stated, while announcing the tariffs.

Australia had previously banned U.S. beef imports in 2003 due to concerns over mad cow disease (BSE), but no cases of BSE have ever been detected in Australian cattle.

While Albanese clarified that Trump had not banned Australian beef, he pointed out that a 10% tariff was applied to all Australian goods entering the U.S., while U.S. goods enter Australia tariff-free. The U.S. is Australia's largest market for red meat, and in 2024, it imported a record 400,000 tonnes of Australian beef.

Impact on farmers

Northern New South Wales cattle farmer Charlie Perry welcomed the 10% tariff, having feared a much higher 25% tax. Perry said the uncertainty around the tariff had been difficult, but with the 10% tariff in place, he felt it was something the industry could manage, ABC News reported.

"Obviously a 10% increase onto an already luxury good, because a lot of the high value cuts go in there, is irritating but not catastrophic," Perry argued.

Australian beef farmers and industry groups stated Thursday that they would pass on the cost of U.S. tariffs to American consumers, increasing prices for hamburgers and steaks. U.S. fast food chains value Australian beef for its lower fat content, which is blended with fattier U.S. beef to meet the ideal fat percentage for burgers, as U.S. regulations mandate ground beef cannot exceed 30% fat.

Discussions to avoid the tariff had stalled over beef, with Australia insisting that U.S. beef imports meet Australian biosecurity standards. Biosecurity, along with subsidized pharmaceuticals and U.S. social media platform rules, were identified by the U.S. as trade barriers that Australia was unwilling to compromise on.

Economic impact

Trump's tariff announcement led to a 0.9% drop in Australian shares and a 0.5% decline in the Australian dollar.

Officials noted that countries in the Indo-Pacific region were particularly affected by the U.S. tariffs, and Albanese suggested that this could potentially benefit China.

"There's no doubt that the response on a range of issues, be it action on climate change as well as trade issues will affect the strategic competition that's here in the region," he said.

Government support for exporters

Australia has pledged financial support for affected exporters. A fund offering AU$1 billion in zero-interest loans will be made available, and the government will direct departments to prioritize purchasing Australian-made goods.

Australian steel and aluminum exports to the U.S. are also affected by tariffs announced in March. However, these shipments make up a small portion of Australia's total annual exports. The potential impact on Australia's mining sector, which provides a significant portion of the world's iron ore and other raw materials, remains uncertain.

Australia to seek new markets

Trade Minister Don Farrell announced that Australia was exploring new export markets in India and the Middle East. Additionally, Australia will seek to restart free trade negotiations with the European Union, which had stalled last year due to disagreements over access to the European market for Australian beef.

"The world has changed," he said.