This bill proposes imposing a 70% tariff on Australian Wagyu beef, semen, and embryos, and grants the President authority to counter unfair Australian trade practices against U.S. Wagyu exports.
Marlin Stutzman
Representative
IN-3
The Protect American Beef Act aims to address the significant trade imbalance concerning Wagyu beef imports from Australia. This bill proposes imposing a 70% tariff on Australian Wagyu meat, semen, and embryos entering the U.S. market. Additionally, it grants the President authority to impose reciprocal duties if Australia maintains unfair tariff or non-tariff barriers against American Wagyu beef exports. The goal is to create a level playing field for domestic producers currently disadvantaged by currency exchange rates and existing trade agreements.
70% Tariff Proposed on Australian Wagyu Beef to Shield U.S. Producers
The newly introduced Protect American Beef Act is a straight-up trade defense measure aimed at shielding U.S. Wagyu cattle producers from Australian competition. The core of the bill is simple: Congress wants to slap a massive 70% tariff on all Wagyu meat, semen, and embryos imported from Australia.
The Currency Problem and the 70% Fix
Congress argues this is necessary because Australian producers have an unfair advantage. Due to currency exchange rates, the Australian dollar is worth about 35% less than the U.S. dollar. This allows Australian sellers to offer their premium beef at a significant discount, undercutting the U.S. market. The bill points out that Australia currently holds nearly half (48%) of the total U.S. Wagyu market share. To level the playing field, the bill proposes the 70% tariff, arguing this is what’s needed to make U.S. producers competitive again (Sec. 2).
For the domestic U.S. Wagyu rancher, this is a clear win. It essentially puts a huge financial brake on their biggest competitor, theoretically allowing them to capture more of the market and potentially increase their prices and profitability. It’s a direct subsidy paid for by the tariff.
Who Pays the Price?
While the bill aims to protect domestic producers, that 70% tariff doesn't just disappear—it gets paid by the importer, and those costs inevitably get passed down the line. If you’re a consumer who enjoys buying Wagyu, be prepared for a serious price shock. Restaurants and high-end grocery stores that rely on Australian imports for their supply will see their costs skyrocket. A steak that costs a restaurant $100 today could jump to $170 overnight, meaning the price on your menu or in your butcher shop is going way up. This affects everyone from the fine dining chef to the average shopper looking for a premium cut.
The President Gets a Trade War Toolkit
Beyond the initial 70% tariff proposal, the bill gives the President significant new authority to engage in trade disputes with Australia over Wagyu (Sec. 3). If the President finds that Australia is hitting U.S. Wagyu beef with tariffs that are too high, or imposing complex, non-tax hurdles (like burdensome regulations), the President can take action. This includes negotiating, or simply imposing a matching U.S. duty to equalize the playing field.
This is where it gets interesting: if Australia were to respond to the initial 70% tariff by raising their own duties on U.S. beef, the President is authorized to raise the U.S. duty even higher to match that new rate. This creates a potential escalation ladder—a trade skirmish focused entirely on premium beef. The U.S. Trade Representative (USTR) will be tasked with figuring out the 'effective rate of duty' for non-tax barriers, which is a complex calculation that could be open to interpretation and negotiation.