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Union warns that Trump's tariff could raise the price of Mexican cattle by US$ 200
Wednesday, February 19, 2025 - 18:16
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The National Confederation of Livestock Organizations said that although small producers do not export, they would suffer the impact of a 25% tariff proposed by the President of the United States.

The tariffs proposed by US President Donald Trump would have a negative economic impact on Mexican cattle producers, both in the export of calves to the United States and in meat products.

Currently, a calf weighing around 220 kilograms is quoted at around $1,000, and with a possible 25% tariff, this would represent an additional burden of more than $200 per head.

"If it is a 25% tariff, then obviously we are talking about approximately 200 dollars in tariffs or taxes, which would be a great burden," calculated the president of the National Confederation of Livestock Organizations (CNOG), Homero García de la Llata.

This increase in costs would mainly affect the northern regions of Mexico, although the domestic market, which continues to grow, could partially mitigate the negative effects.

The imposition of 25% tariffs on imports of products from Mexico to the United States is on hold. A resolution is expected in early March.

García de la Llata explained that each year around 6 million calves are fattened in Mexico, and of those, approximately 1.3 million are exported to the United States.

“Obviously we have met with the producers in the United States who buy these calves. We have also met with our fatteners and with those who export meat from the United States to Mexico. We have met with Canada and also with the leaders of the organizations and in the retaliation that there is an issue with meat and calves, we are all going to lose,” he commented.

He therefore called on the authorities of the three countries to “carefully analyse the impact” on producers, but mainly on consumers in the three countries, since this will make meat products more expensive, and “that is not good for anyone.”

The president of the National Confederation of Livestock Organizations (CNOG) said that although small producers do not export, they would suffer the impact of a 25 percent tariff.

This is because the prices they would receive for live cattle could fall, as middlemen would seek to offset the additional cost of the tariff.

"I think that this issue of tariffs should not occur because we are completely integrated. The United States sends us 220,000 tons of beef, we send them 280,000 tons of beef, in value it is more or less the same because we send more expensive cuts," he stressed.

"I hope that political issues will not exacerbate tensions and we can continue to enjoy these (trade) benefits that we have," he added.

In the beef cattle sector there are almost one million cattle farmers involved in production.

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