Potential tariffs on Australian beef could drive up price of McDonald's in USA, trade minister warns

Australian Trade Minister Don Farrell has warned that the United States may impose tariffs on Australian beef, which would lead to higher prices at McDonald's in the U.S. Australian beef exporters are facing concerns about whether the Trump administration will take new high tariff measures on meat exports, and any decision to impose tariffs on Australian beef could lead to an increase in the price of McDonald's meals in the United States.

The Trade Minister stated that imposing tariffs on Australian beef imported into the United States would "severely" harm Australian farmers and negatively impact fast-food consumers in the U.S. Minister Farrell pointed out that the primary use of Australian beef exports to the United States is to supply McDonald's hamburgers, and if the export price of beef is increased by 25% or 10%, then the price of hamburgers will also climb accordingly.

Under current regulations, Australian exporters can export 448,214 tons of beef to the United States duty-free. In 2024, as of the end of November, Australian beef exports to the United States had surged to 353,000 tons. Australian Prime Minister Anthony Albanese has confirmed that he is still working to secure a tariff exemption for Australia.

Prime Minister Albanese stated at a media conference that the United States enjoys a trade surplus with Australia, and tariffs are taxes levied on global product buyers, including American buyers, whether it be steel or aluminum. These tariffs are a tax on Americans, not on producers, which is why the market reacted very negatively to the Trump administration's moves. He added, "We have many good friends in the United States, and we hope they will act accordingly."

Minister Farrell said last week that the Trump administration made an "extremely self-harming act" by imposing new tariffs, including a 25% tariff on steel and aluminum. Major trading partners of the EU have indicated that they will impose retaliatory tariffs on American beef, poultry, bourbon whiskey, motorcycles, peanut butter, and jeans. Minister Farrell stated that despite the discouraging news from the United States, Australia has many other countries to sell its high-quality food and wine to and will continue to do so, committed to expanding trade relations rather than contracting them.