Over the past week, US President Donald Trump has insisted that beef is the only grocery item that has become more expensive during his second term. Moreover, Trump has accused foreign-owned meat companies of inflating US beef prices and has ordered a new federal investigation. According to a CNN report though, government data and experts say the reality is far more complicated and goes beyond the beef price hike.
The investigation announcement was made by Trump via a social media post on Friday. The probe comes at the heels of Republicans suffering losses in three key elections where Democrats had campaigned hard on the rising cost of living. In a post on TruthSocial, the US President said he was acting to “protect American ranchers” who are “being blamed for what is being done by Majority Foreign Owned Meat Packers, who artificially inflate prices”.
“I have asked the DOJ to immediately begin an investigation into the meatpacking companies that are driving up the price of Beef through Illicit Collusion, Price Fixing, and Price Manipulation,” Trump added.
Trump did not present evidence to support his allegations. Meat packers and agricultural experts claimed that the industry is heavily monitored and the ownership patterns have not changed in recent years.
Trump keeps claiming beef only product getting costlier. It’s not
In interviews with Fox News, CBS and speeches in Tokyo and at the White House, Trump has repeatedly said that groceries overall are “way down”, except for beef. According to a CNN fact-check, this statement is “wrong”
The CNN analysis showed grocery prices are up, not down as being claimed by Trump. Consumer Price Index data showed that average grocery prices in September were 1.4 per cent higher than in January. They were 2.7 per cent higher than they were under Biden in September 2024. And the July-to-August jump of 0.6 percent was the biggest in three years.
Only dairy prices have fallen slightly. Every other major grocery category just got a boost. “His claims don’t match the government’s own data,” Michigan State University food economist David Ortega told CNN. He added that tariffs and the crackdown on undocumented workers, who make up much of the US farm labor force, are now feeding into higher consumer prices.
Dozens of products have become more expensive
According to CNN, from January to September:
Meats, poultry, fish, eggs: up 4.5 percent
Non-alcoholic beverages: up 2.8 percent
Cereals and bakery goods: up 1.4 percent
Fruits and vegetables: up 1.3 percent
Other food items: up 0.8 percent
The list of individual grocery items that have become costlier goes way past this list. Beef is one, but so are coffee, bananas, chicken and many everyday staples.
US consumer sentiment at all-time low
Consumers are reaching their limit. Even though Americans love their burgers and steaks, the steep prices are starting to push them away, not only when it comes to food, but in other daily expenses, too. According to a Bloomberg report, the latest University of Michigan survey showed consumer sentiment falling to 50.3 in early November, one of the lowest readings ever recorded. Only June 2022, when the index hit 50, was worse in data recorded since 1978.
Researchers say the message is clear, people are feeling squeezed from every direction and the ongoing government shutdown is making things even heavier.
Why beef prices have climbed to record highs
The US cattle herd is now at its lowest level in more than 75 years, after years of drought and low prices, according to NPR. Trump’s tariffs on Brazilian beef, which now face a 76 per cent tariff, have also impacted the imports. Concerns over a screwworm parasite have hindered livestock movement from Mexico into the US, further disrupting the supply.
Demand for beef is still strong and people who want to eat and can afford it, are willing to pay for it, Glynn Tonsor of Kansas State University, who runs the Meat Demand Monitor, told news agency AP.
Oklahoma State University’s Derrell Peel added that there is still no proof that packers have manipulated prices. “This industry has been investigated for 50 years,” he told AP, doubting that a fresh inquiry will lower prices.
Meat packers say they’re losing money, not inflating prices
A group of Republican senators met Trump at the White House earlier Friday to discuss beef prices. Oklahoma Senator Markwayne Mullin compared the situation to a 2019 antitrust lawsuit against major packers.
JBS, the Brazilian company that is the largest beef producer in the US, has faced price-fixing allegations before. It paid a $52.5 million settlement in 2022 but did not admit wrongdoing, according to AP. In a statement, Meat Institute President and CEO Julie Anna Potts said, “For more than a year, beef packers have been operating at a loss due to a tight cattle supply and strong demand.”