U.S. Fills Beef Tariff Quota in Record Time

The U.S. quota for low-tariff beef imports in Japan was filled by the end of February. Nikkei (NEE-kay) Asia says that’s the fastest rate since 2020. That’s not good news for Japan either. The rest of the year, beef imports are subject to higher tariffs, which means Japan will face challenges to increasing exports of its premium Wagyu beef supplies. The import quota resets yearly on January 1. The import quota has already reached the 65,005-ton limit and closed on February 27. Brazil also shipped beef to the U.S. ahead of the new year. Because of soaring inflation, Brazil aggressively marketed its lower-cost beef. That means Japan and Brazil appear to have used up their tariff quota in the first two months of the year, which is two months sooner than in 2023. The shared quota has no country or region-specific caps and is effectively a first-come, first-served system, creating intense competition.

Source: NAFB