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 could potentially lead to price increases at McDonald's in the U.S. Australian beef exporters are closely monitoring whether the Trump administration will implement a new round of severe tariff measures on meat exports, and any decision to impose tariffs on Australian beef could drive up the cost of McDonald's meals in America.

Minister Farrell stated that imposing tariffs on Australian beef imported into the United States would "seriously" harm Australian farmers and negatively impact fast-food consumers in America. He pointed out that most of the beef Australia exports to the U.S. is used in McDonald's hamburgers, and if the price of these beef exports is increased by 25% or 10%, then the price of hamburgers will also rise. He added, "It makes no sense."

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

Prime Minister Albanese stated at a press conference, "We will continue to fight for Australia's rights. The United States has a trade surplus with Australia. Tariffs are a tax on products for American buyers, regardless of where the products come from in the world, including steel and aluminum. These tariffs are a tax on Americans, not on producers, which is why the market has reacted very negatively to these moves by the Trump administration." He added, "We have many good friends in the United States, and we hope they will take appropriate action."

Farrell said last week that the Trump administration's recent tariff measures, including the imposition of 25% tariffs on steel and aluminum, were a "serious act of self-harm." Major trading partners of the EU have indicated they will impose retaliatory tariffs on U.S. beef, poultry, bourbon whiskey, motorcycles, peanut butter, and jeans. Farrell stated, "The news from the United States is discouraging, but we have many other countries around the world where we can sell our high-quality food and wine. We will continue to do so, and we will expand our trade relationships, not shrink them."