The tariffs that US President Donald Trump plans to implement would have an adverse economic effect on Mexican cattle farmers, affecting both the export of calves to the United States and the sale of meat products.
Currently, a calf weighing about 220 kilograms is worth approximately $1,000. With a possible 25% tariff, this would mean an additional cost of more than $200 per head of cattle.
If a 25% tariff is applied, we would be talking about approximately $200 additional per head in taxes, which would represent a significant burden,” calculated Homero García de la Llata, president of the National Confederation of Livestock Organizations (CNOG).
This increase in costs would mainly impact the northern regions of Mexico, although the national market, which continues to expand, could help partially offset the negative effects.
The possible imposition of 25% tariffs on imports of Mexican products to the United States is currently on hold, with a decision expected in early March.
García de la Llata explained that around 6 million calves are fattened in Mexico each year, of which approximately 1.3 million are exported to the United States.
«We have met with the American producers who buy these calves, as well as with our fatteners and meat exporters to Mexico. We have also worked with Canada and with leaders of livestock organizations. In the event of reprisals related to meat and calves, we would all lose out,» he commented.
Therefore, he called on the authorities of the three countries to «carefully analyze the repercussions» on producers and, especially, on consumers, since this would make meat products more expensive, something that «does not benefit anyone.»
The president of the National Confederation of Livestock Organizations (CNOG) pointed out that, although small producers do not export directly, they would also suffer the consequences of a 25% tariff.
This is because the prices they would receive for live cattle could decrease, as intermediaries would seek to compensate for the additional cost generated by the tariff.
‘I believe that this issue of tariffs should not be implemented, since our economies are completely integrated. The United States sends us 220,000 tons of beef, and we send them 280,000 tons. In terms of value, it is similar, since we export more expensive cuts,’ he stressed.
‘I hope that political issues do not increase tensions and we can continue enjoying the commercial benefits that we have,’ he added.
In the beef sector, almost a million cattle farmers are involved in production.