AUSTRALIA’S beef exports to the United States will remain tariff-exempt despite US president Donald Trump late last week imposing a new 15 percent tariff on imports.

However the tariff on sheep and goatmeat imports will increase to 15pc under the new regimen, announced by President Trump after the Supreme Court on Friday ruled he exceeded his authority in using emergency economic powers laws to impose his global 10pc Liberation Day tariff.

After the US Supreme Court on Thursday voted 6-3 to strike down his previous tariff program, Mr Trump retaliated by raising a new 10pc tariff using different legislation, only to raise it to 15pc the following day.

The new tariff can be applied for up to 150 days, after which Mr Trump must seek Congressional approval to continue. In a social media post on Saturday, Mr Trump said he would use the 150 days to “work on issuing other legally permissible tariffs.”

Last week’s Supreme Court ruling found Mr Trump had exceeded his authority when he imposed an array of higher rates under an economic emergency law.

It is anticipated that the new tariffs will apply from Tuesday, 24 February.

In responses out of Australia this week, Federal trade minister Don Farrell said Australia believed in free and fair trade.

“We have consistently advocated against these unjustified tariffs. We are working closely with our embassy in Washington to assess the implications and examine all options,” he said.

Meat & Livestock Australia managing director Michael Crowley confirmed that Australian beef will remain exempt from the new measure, maintaining a zero tariff following the announcement made in November 2025.

“Unfortunately, Australian sheepmeat and goatmeat will see tariffs increase from 10pc to 15pc under the new arrangements,” Mr Crowley said.

“MLA will work with industry and the Australian Government to navigate the challenges this new tariff hike will impose,” he said.

The United States was Australia’s number one export market for beef, lamb and goatmeat in 2025, highlighting the importance of this trading relationship for producers and the broader red meat supply chain.

“MLA maintains a dedicated office in Washington, DC, and we continue to liaise closely with the Australian Government, industry partners and stakeholders throughout the supply chain to ensure Australian red meat remains highly valued, competitive and trusted in the US market,” Mr Crowley said.

Tariff changes difficult for sheep and goat meat processors

Australian Meat Industry Council chief executive officer Tim Ryan said the tariff changes came at a difficult time for sheepmeat processors and exporters.

“AMIC is working with our partners in government and industry to get a firm understanding of the application of the new tariffs, including confirmation that the 15pc will not apply to beef exports and when the tariffs will enter into force.

“Regardless, it appears that sheep meat and goat meat exports will now face an increase in applied tariff from 10pc to 15pc, with Australia also losing any comparative advantage we had held under the previous tariff arrangements,” Mr Ryan said.

“These changes come at a particularly difficult time for the Australian sheep meat supply chain, with processors and exporters trading on thin or negative margins amid high livestock prices and soft demand.

“The US is a longstanding and valuable export market for Australian red meat, and these developments reintroduce significant uncertainty and costs for Australian exporters and US consumers alike,” he said.

“AMIC will continue to work closely with the Australian Government and industry partners to clarify the application and operation of these changes, advocate for trade stability, and ensure our industry’s interests are strongly represented.”

Cattle Australia view

Cattle Australia chief executive Will Evans said confirmation of reports indicating Australian beef exports will not be affected by President Trump’s weekend announcement was being sought through the Australian Government and industry channels.

“The Australian Government reached an agreement with the US in November for Australian beef to be supplied tariff-free, and we strongly believe that this should continue to be the case,” Mr Evans said.

“The US remains Australia’s largest beef export market, with our lean beef complementary to American supplies. The US is a long-standing and valued trading partner, and the continuation of the agreed zero-tariff position would provide confidence to both Australian grassfed beef producers and consumers in the US.

“US demand for Australian beef has never been stronger, which reflects the benefits to all parties of opening international markets and the removal of trade barriers.

“Cattle Australia will continue to work closely with the Australian government, Meat & Livestock Australia and other peak industry bodies to advocate for the removal of trade barriers around the world.”

‘Panic slowly’ on sheep meat tariff announcement

Global AgriTrends analyst Simon Quilty advised the Australian sheep meat industry to “panic slowly” on Mr Trump’s latest tariff announcements.

“He’s put a punitive tariff on of 15pc across the board, but given the desire to lower the cost of protein in America, does this remain in place?

“There are still many questions to be asked.”

President Trump has also directed the Office of the United States Trade Representative to use its section 301 authority to investigate certain unreasonable and discriminatory acts, policies, and practices that burden or restrict US commerce, which seems consistent with a recent American Sheep Industry Association request to the USTR to investigate the impact of lamb imports on US producers.

However, Mr Quilty said the value of domestic lamb in the US was at a near-record high, with a year-on-year increase in the cut-out value by 18pc for January-February, and the level of Australian lamb imports has dropped year-on-year by 7pc for the same period.

“So even if they were to go down that path of investigations you would think it (any ruling) would be in Australia and New Zealand’s favour.”

Mr Quilty said the long-term trend pointed to US domestic lamb pricing remaining significantly higher and firmer than in 2024 and 2025.

“The only period that surpassed the current level was during COVID, peaking in October 2021, and we’re yet to get back to there.

“So strong demand and tightening supplies are pointing toward a good year for lamb in global markets, particularly in North America, which drives the value of Australian light, trade and heavy lamb.”

Mr Quilty said he was told on Friday evening, US-time (Saturday AM in Australia) that some Australian beef deals into the US were turned down by American buyers due to the lack of clarity on whether the 15pc tariff would be applied to beef.

Littleproud backs rules-based trade

Speaking on Sky News today, Nationals leader David Littleproud said the US tariffs were inflationary for US consumers.

“The reality is, is the people who ultimately pay for this is the consumer, and I think Donald Trump already got an experience of this when he tried to tariff beef, particularly ground beef, which goes into their patties, goes into their hamburgers, and he’s one of the biggest consumers himself personally.

“He’s found out that it is inflationary, that it gets passed on, and ultimately the consumer pays,” he said.

“So it’s important that we continue to remind President Trump that a rules-based order of trade, is the element that has been successful for the United States.”

Mr Littleproud said it is good to see the Albanese Government is making representation around the inflationary nature of tariffs.

“But it’s also hypocritical of the Albanese Government when they’re looking to bring in a tariff on carbon-intensive imports into this country through a carbon border adjustment mechanism.

“So things like concrete, things like steel, fertilizer for your food, will have a tariff put on them because they have high carbon output,” he said.

Beef exemption confirmed

The White House has confirmed that beef is exempt from the latest tariff in a – Fact Sheet: President Donald J. Trump Imposes a Temporary Import Duty to Address Fundamental Intern…

The Meat Industry Council of America said late Friday evening, following release of the US Supreme Court’s decision overturning the IEEPA tariffs, the Trump Administration issued an Executive Order invoking Section 122 of the Trade Act of 1964 to place a temporary global 10pc tariff on all products from all countries due to a balance of payment crisis.

The new Executive Order has adopted the same list of product exceptions that were previously incorporated into the IEEPA tariff regime.

Beef continues to be included among the exempt agricultural products and is not subject to the new 10pc Section 122 tariff surcharge, MICA said.

Compensation?

One of the big unknowns following the US Supreme Court’s finding last week that earlier tariffs charged under the International Emergency Economic Powers Act (IEEPA) were illegal, is whether compensation is possible.

The US administration is now left with the major headache of how to refund the US$184 billion in tariffs it has already collected. According to modelling by EY,  Aussie exporters and their US customers have forked out more than $1.4 billion in IEEPA tariffs for Australian goods shipped to the US since April last year.

Each importer might have to sue in the US Court of International Trade to get a refund, potentially paying thousands of dollars in legal fees, Nine MSN reported.