Tariffs Drive Up Beef Prices, Threatening “Most Expensive Burger Ever” in the US

CNBC AI News, July 24th – American burger aficionados may need to brace themselves this summer. A confluence of factors, from trade tariffs to climate pressures, is driving U.S. beef prices to record highs, potentially ushering in what some are calling “the most expensive burgers in history.”

New data from the U.S. Bureau of Labor Statistics revealed that the average price of ground beef hit $13.49 per kilogram in June, marking an all-time high. This represents a nearly 12% increase compared to the same period last year, and an 8% jump since January alone.

The upward pressure isn’t confined to ground beef. Figures from the U.S. Department of Agriculture’s Agricultural Marketing Service show steak prices also reflecting the inflationary trend, rising approximately 8% year-over-year.

The USDA’s Economic Research Service (ERS) elaborated on the situation in a July 17th report, stating that due to a 21% surge in boxed beef prices during the first half of the year, their projections for average beef prices in 2025 have been revised upward.

What’s behind this rapid price escalation? Beyond persistent drought conditions impacting pastureland and escalating feed costs, U.S. trade policy is playing a significant role. Earlier this month, the U.S. President announced via social media the imposition of a 50% tariff on all goods imported from Brazil, effective August 1st.

This new levy, coupled with existing import duties, effectively raises the total tax burden on Brazilian beef entering the U.S. market to approximately 76%.

The implications for American consumers are clear. Some are predicting that “this summer’s hamburgers will be the priciest ever.” To mitigate the impact on their bottom line, at least one burger chain owner has reportedly reduced the weight of their patties from 150 grams to 130 grams. For many consumers, this may necessitate a shift in dietary habits as they navigate the increasingly expensive world of beef.