The looming threat of US tariffs on Australian beef could drive up the price of McDonald's in America, Trade Minister Don Farrell has warned.
Australian farmers are facing an anxious wait over whether the Trump administration will target meat exports in a fresh round of stiff tariffs – and any decision to impose tariffs on Aussie beef could result in higher prices for a McDonald's meal in the USA.
The trade minister said a beef tariff on Australian imports into the US would "significantly" hurt farmers here and negatively impact American fast food customers.
"The significance, of course, to the US about our beef exports is that most of it goes into McDonald's hamburgers," Farrell said today.
"If you push up the price of those beef exports by 25 per cent or 10 per cent or whatever the figure is, then you push up the price of hamburgers."
"It doesn't make any sense," he added.
Under the current rules, Australian exporters can export 448,214 tonnes of beef to the US at a zero tariff rate.
In 2024, Australian beef exports to the US surged to 353,000 tonnes by the end of November.
Prime Minister Anthony Albanese confirmed today he was still fighting for a tariff exemption in Australia.
"We'll continue to argue Australia's case," the PM said today in a media conference.
"The United States enjoys a trade surplus with Australia. Tariffs are a tax on the American buyers of products from right around the world, regardless of where it's coming from, on steel and aluminium. There are these tariffs, which are a tax on Americans.
"They're not a tax on the producer, they're a tax on Americans, which is why we have seen the markets respond in the way that they have, in a very negative way, to these moves by the Trump administration.
Albanese added: "We have great friends in the United States, and we expect them to act accordingly."
Farrell said last week the Trump administration had done a "great act of self-harm" by imposing the recent tariffs, including a 25 per cent tax on steel and aluminium.
Trump last week ruled out a tariff exemption for Australian steel and aluminium.
Major trade partners in the EU said it would raise retaliatory tariffs on American beef, poultry, bourbon, motorbikes, peanut butter and jeans.
"Bad news from America, but we have a whole lot of other countries around the world where we want to sell our wonderful food and wine," Farrell said.
"And we'll continue to do that.
"We are going to expand our trade relationship, not contract it."
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