President Donald Trump requested that the Justice Department initiate an inquiry into the meatpacking sector, alleging that they were “driving up the price of Beef through Illicit Collusion, Price Fixing, and Price Manipulation.”
“I am asking the DOJ to act expeditiously,” Trump posted Friday on social media. “Action must be taken immediately to protect Consumers, combat Illegal Monopolies, and ensure these Corporations are not criminally profiting at the expense of the American People.”
Shares for the world’s largest meatpacker, JBS NV, fell by as much as 6.2% on Trump’s comments, while Tyson Foods Inc. Shares dropped by as much as 2% before paring losses to turn higher.
High cost of living dominated voter concerns this week in off-year elections, propelling Democrats to victory over Trump’s Republicans in races across the country. Polls showed voters gave Trump low ratings for his handling of the economy, and afterward his advisers vowed to place a greater focus on affordability.
Trump's most recent focus for curbing food inflation is beef, with retail ground beef prices reaching unprecedented levels. The US cattle population has dramatically decreased due to ranchers grappling with elevated interest rates, costly feed, and drought conditions. Restoring the herd's size will require several years.
However, Trump attempted to assign responsibility to major companies that handle beef for shoppers.
“While Cattle Prices have dropped substantially, the price of Boxed Beef has gone up — Therefore, you know that something is ‘fishy.’ We will get to the bottom of it very quickly. If there is criminality, those people responsible will pay a steep price!” Trump wrote in a subsequent post.
Read more: Trump Sparks Rare GOP Pushback With Purchases of Argentine Beef
Allies in agricultural states are criticizing the president's approach to meat prices, arguing that his proposal to increase the tariff-free quota for Argentine beef fourfold could harm American farmers.
Brazil's beef exports were impacted by Trump's choice to enact 50% tariffs on goods from the country due to diplomatic disagreements. JBS and Minerva SA, another major meat company, are headquartered in Brazil.