US beef lean trim prices surge 9% since US tariffs announcement

US prices for 90CL lean beef trim have climbed 9% since the announcement of US tariffs amid limited domestic supplies of lean trims and strong demand.

Platts, a part of S&P Global Commodity Insights, assessed 90CL beef CIF US at $7,319/mt, or $3.32/lb, on April 16, compared with $6,702/mt, or $3.04/lb, on April 2, when tariffs were announced by US President Donald J Trump after the market close.

90CL beef CIF US prices have rose 13% during 2025, and 7% since April 9, when the tariffs went into effect.

Limited lean beef trimmings supply in origins and the US, had supported prices, with more trade activity than previous weeks, sources said.

"Lean beef trimmings buyers had been holding back their purchases in previous weeks amid the tariff uncertainty, but they had to buy these days and were faced with high prices and tariffs," a market participant said. "There is no pressure to sell as not much volume is offered for lean beef trimmings, Australian and New Zealand exporters are well-positioned."

Kevin Coburn, director of meat and livestock analysis for S&P Global Commodity Insights, said the tight supply of lean beef production will continue as the year "moves forward and keep an underpinned tone. However, the year-over-year declines in [US] production are likely much larger in the first half of the year vs second half in respect to lean beef production," he said.

There is still uncertainty about the tariffs, but the main question is if the end consumer will pay higher prices, although there are no other more economical options for beef and in addition, prices for US chicken skinless breast are having their own rally, according to market participants.

"Tariffs are passing through to the system and will ultimately be paid for by the consumer," Coburn said. "Wholesale markets are adjusting accordingly to that right now."

"We suspect that demand erosion is possible but will take time to play out," he added. "For now, there no major concerns for the spring in terms of changing consumer behavior significantly but a watchpoint will be consumer sentiment, which just came in at a multi-decade low."

According to Coburn, the cumulative impact of tariffs could take a quarter or two to start having impacts on consumer balance sheets, been the main question how fast can behavior change when that starts to hit.