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Trump Demands Justice Department Investigation Into Meat-Packing Firms
U.S. President Donald Trump directed the Justice Department on Friday to investigate potential antitrust violations by meat-packing companies, accusing them of "illicit collusion, price fixing, and price manipulation" to inflate beef costs for consumers. The move follows mounting political pressure over soaring beef prices, which have become a key economic concern ahead of recent Republican election losses.
Political Pressure Mounts Amid Rising Food Costs
Trump's call for a federal probe comes as beef prices continue to climb, undermining his administration's pledges to reduce food expenses for Americans. Retail prices for ground beef surged 12.9% over the past year, while beef steaks rose 16.6%, according to October government data-far outpacing the 3.1% general food inflation rate. A pound of ground chuck now averages $6.33, up from $5.58 a year ago.
The president's latest push marks a shift in strategy after earlier proposals-including urging ranchers to lower cattle prices and expanding beef imports from Argentina-drew backlash from livestock producers. Critics argued those measures could hurt domestic ranchers without significantly easing grocery costs.
Industry Consolidation Under Scrutiny
In a social media post, Trump blamed "majority foreign-owned meat packers" for artificially driving up prices and threatening national food security, while vowing to protect American ranchers. The meat-packing sector is dominated by four firms-Tyson, JBS, Cargill, and National Beef-which control over 80% of U.S. beef processing. These companies have faced multiple lawsuits, including a McDonald's claim alleging collusion to inflate beef prices.
Economists cite supply constraints and strong demand as primary drivers of high beef costs, with U.S. cattle inventories at their lowest in nearly 75 years due to drought and industry contraction. However, bipartisan concerns persist over market concentration. The Biden administration previously ordered agencies to address corporate consolidation in food supply chains, though Trump revoked that directive earlier this year.
"We will always protect our American Ranchers, and they are being blamed for what is being done by Majority Foreign Owned Meat Packers, who artificially inflate prices, and jeopardize the security of our Nation's food supply."
Donald Trump, U.S. President, via social media
Broader Economic Fallout
Trump's focus on beef prices follows Republican setbacks in recent elections, where voter dissatisfaction with cost-of-living issues and economic management bolstered Democratic candidates. Analysts suggest the administration's latest move aims to address consumer frustrations while navigating tensions with ranchers, who fear policies could further squeeze their margins.
