Australia's trade minister has cautioned that Donald Trump's tariff policies might lead to higher hamburger prices in the U.S., particularly affecting McDonald's. Don Farrell highlighted that a significant portion of Australian beef exported to the U.S. is used by the fast-food chain, and new tariffs on these exports could drive up the cost of items like cheeseburgers and Big Macs for American consumers.
Farrell is advocating for exemptions from Trump's expanding tariff measures, although he admits uncertainty about what might be included in any potential agreement. He aims to present a compelling case to the U.S. administration.
The Australian government is actively seeking to reduce U.S. tariffs on steel and aluminum, which currently stand at 25%, as part of Trump's global trade measures. They are also working to prevent future tariffs on other sectors, such as agriculture and pharmaceuticals. Australian farmers are particularly concerned about the possibility of tariffs on meat exports.
Prime Minister Anthony Albanese has criticized the U.S. tariffs, stating they are not actions expected from a friendly nation. He emphasized that these tariffs essentially tax American consumers rather than producers, leading to negative market reactions.
Farrell plans to discuss these issues with U.S. trade representatives, arguing against the tariffs and advocating for more free and fair trade. He clarified that Australia has no intention of imposing retaliatory tariffs on the U.S.
The U.S. is a major market for Australian beef, lamb, and goat meat, with exports totaling $6.2 billion in 2024. Farrell warned that tariffs on agricultural products like beef could significantly impact both Australian producers and American consumers, particularly since much of the beef is used in McDonald's hamburgers.
The opposition has criticized Albanese for not visiting the U.S. to negotiate exemptions personally. Deputy opposition leader Sussan Ley pointed out that other leaders have traveled to Washington to advocate for their countries' interests.
Farrell dismissed claims that the opposition could have secured better outcomes, noting Trump's comments about considering Australia for exemptions and contrasting them with the previous government's handling of trade tensions with China, which have since been resolved.