The European Union (EU) and the United States (US) have struck a significant trade agreement aimed at easing tensions between two of the world’s largest economies. While the deal offers reduced tariffs on industrial goods and some agricultural concessions, beef and poultry — two of the most sensitive sectors in both regions — were deliberately excluded from tariff cuts.
This exclusion highlights deeper political, economic, and agricultural priorities. In this detailed blog, we’ll break down why beef and poultry were spared, what concessions were granted, and how the deal impacts global trade, farmers, and consumers.
🏛️ Background: EU-US Trade Tensions
For years, trade relations between the EU and the US have been strained by tariff disputes. Under former US President Donald Trump, tensions escalated as Washington accused Brussels of unfair trade practices and threatened high tariffs on European goods.
In July 2024, a framework agreement was reached between Trump and EU Commission President Ursula von der Leyen to prevent a trade war. Under this framework:
- The EU agreed to cut duties on US industrial goods.
- The US reduced tariffs on European cars from 27.5% to 15%.
- Both sides pledged to boost energy trade and improve market access.
However, the deal is asymmetric — the EU is cutting more tariffs, while Washington is retaining tariffs on 70% of EU exports.
🥩 Why Beef and Poultry Were Excluded
One of the most striking aspects of the deal is the deliberate exclusion of beef and poultry from tariff cuts.
1. Protecting Domestic Farmers
Both the EU and US have powerful livestock industries with significant political influence.
- EU farmers, particularly in France, Germany, and Ireland, fear that cheap US beef and poultry could flood European markets and undercut prices.
- US producers, meanwhile, want to protect domestic cattle and poultry farmers from European imports.
This mutual protectionism explains why these sectors were labeled “defensive interests” and shielded from liberalization.
2. Food Safety & Regulatory Standards
A major sticking point between the EU and US is food safety regulations.
- The EU follows stricter animal welfare and food safety laws, including bans on hormone-treated beef and chlorine-washed poultry.
- US producers rely heavily on production-enhancing hormones and different sanitization techniques, which the EU sees as incompatible with its consumer protection policies.
Opening beef and poultry markets would have ignited consumer backlash in Europe — making exclusion politically safer.
3. Ongoing Negotiation Strategy
By excluding beef and poultry from this round, both sides retain leverage for future negotiations.
- These sectors represent high-value exports, making them bargaining chips in later trade talks.
- Analysts believe future agreements may gradually open up quotas rather than full tariff cuts.
🥛 Pork, Dairy & Other Concessions
While beef and poultry were spared, pork and dairy products received limited tariff relief.
Agricultural Highlights:
- Pork: Zero or low-tariff quotas introduced, benefiting US pork producers.
- Dairy: Reduced tariffs on cheese and milk-based products to boost EU-US trade flows.
- Potatoes, Tomatoes & Cocoa: Preferential tariff cuts granted, expanding cross-border exports.
- Ethanol & Rice: Explicitly excluded, similar to beef and poultry.
These concessions are designed to appease both agricultural lobbies without disrupting domestic markets too heavily.
🚗 Industrial Goods & Car Tariffs
Beyond agriculture, the biggest headline from this deal is the reduction of US car tariffs:
- US tariffs on EU-built cars dropped from 27.5% to 15% starting August 1st, 2024.
- The EU agreed to remove duties on most US industrial goods, benefiting American manufacturers.
However, critics note that two-thirds of industrial products were already tariff-free, meaning the economic impact may be modest.
Country-Wise Beef & Poultry Trade Analysis — import/export data & market impacts
Note: figures cited are the most recent aggregated country-level trade snapshots available from government/industry reports and market summaries. I cite the key sources after each country block.
🇺🇸 United States — beef & poultry (export power, limited EU access)
Trade snapshot & data:
- The U.S. is one of the world’s largest beef exporters by value (export value ≈ $10.5bn in recent trade reporting periods; export volume ~1.29 million tonnes reported in USDA summaries). U.S. poultry is also a top global exporter, highly price-competitive.
Market dynamics & likely impacts from the EU–US deal:
- Because the EU excluded beef and poultry from tariff cuts, U.S. exporters lose a direct opportunity to expand in the EU. U.S. meat exporters will instead re-focus on Asia, Mexico and other regions where access is already strong.
- Expect exporters and packers to reallocate sales/marketing budgets to faster-growing importers (China, Mexico, Southeast Asia). The EU omission is a near-term neutral to slightly negative signal for U.S. beef/poultry prices in EU-linked product lines.
🇪🇺 European Union (EU27) — mixed producer/exporter, strict standards
Trade snapshot & data:
- The EU is a significant beef producer (production ~6.3 million tonnes beef CWE in 2024) and exports animal products (exports of animal products valued at ~€46bn in 2024). Several member states export beef and poultry within and beyond the bloc.
Market dynamics & likely impacts:
- Excluding beef & poultry protects EU domestic producers from immediate price pressure and import competition from the U.S. — important politically (farm lobby) and for food safety standards (hormone/chlorine issues).
- Short term: retail/meat prices in EU markets likely stable. Medium term: EU may expand trade with Mercosur and other suppliers for price-competitive cuts if domestic prices rise.
🇧🇷 Brazil — global beef & poultry export leader
Trade snapshot & data:
- Brazil is the world’s largest beef exporter by volume; recent reporting shows record beef exports (e.g., ~2.9 million tonnes in 2024 valued ≈ US$12.8bn) and very large poultry shipments as well. Brazil supplies major markets including China, Middle East and the EU (processed/under quotas).
Market dynamics & likely impacts:
- With beef & poultry excluded from the EU–US tariff easing, Brazil retains key advantages: price competitiveness, scale and market access (China, MENA, Mexico).
- Any long-term shifts from the EU could benefit Brazil’s share in Europe and create upward price pressure for competitors if Brazilian exporters divert volumes into alternative markets. Recent tariff moves by the U.S. vs Brazil could also shift flows regionally (see Reuters market commentary).
🇦🇷🇺🇾 Argentina & Uruguay — premium beef niches
Trade snapshot & data:
- Argentina and Uruguay are smaller in volume than Brazil but known for premium, grass-fed beef and export niches (Hilton/traceable brands to EU/Asia). They export significant volumes to EU and China under specific quotas/agreements.
Market dynamics & likely impacts:
- EU protection for beef helps preserve premium market access under existing quotas (good for Argentina/Uruguay producers who target high-value EU segments).
- If global price dynamics tighten (Brazil diverts flows), Argentina/Uruguay could see higher export prices in premium channels (foodservice, specialty retail).
🇦🇺🇳🇿 Australia & New Zealand — counter-seasonal and premium exporters
Trade snapshot & data:
- Australia and New Zealand are premium, counter-seasonal beef exporters; they serve high-value markets (Japan, Korea, China) and have strong traceability claims. (Australia’s red-meat snapshots show consistent exports and a premium positioning.)
Market dynamics & likely impacts:
- The EU–US deal is neutral to slightly positive for Australia/NZ: less immediate extra competition from U.S. exporters in EU channels keeps competitors balanced; conversely, any global rerouting of Brazilian volumes could briefly tighten exportable supplies and lift prices.
🇨🇳 China — massive beef importer and shifting demand
Trade snapshot & data:
- China is among the largest beef importers (total beef imports reached ~$14.2bn in 2023), with Brazil providing roughly ~40% of those imports (2023 data). China’s demand is powerful and price-sensitive.
Market dynamics & likely impacts:
- Since EU–US meat access didn’t change for beef/poultry, China remains a key outlet for major exporters (Brazil, Argentina, Australia, Uruguay).
- If Brazilian volumes are redirected because of tariffs or new trade flows, China may compete for alternative suppliers, pushing prices up regionally; exporters with reliable certification can capture additional share.
🇲🇽 Mexico regional demand hub & re-routing potential
Trade snapshot & data:
- Mexico is a top destination for U.S. and Brazilian meat; recent month-to-month trade shifts show Mexico increasing imports from Brazil as tariff regimes change. (Industry bulletins show bulk flows of beef and pork into Mexico in 2024-25.)
Market dynamics & likely impacts:
- Mexico acts as both direct consumer market and potential re-export hub into regions such as Central America or, indirectly, to the U.S. if tariff workarounds arise. Traders will exploit any price spreads from the EU–US deal.
🇯🇵🇰🇷 Japan & South Korea high-value importers with strict specs
Trade snapshot & data:
- Japan and Korea import high volumes of premium beef (Australian, U.S., and increasingly South American suppliers) and maintain strict sanitary and traceability standards.
Market dynamics & likely impacts:
- Excluding beef/poultry from EU–US liberalization doesn’t change demand in these markets — they will continue buying based on price, quality and supply reliability. Any global rerouting (e.g., Brazil to Mexico) could tighten regional supplies and raise prices here.
🇷🇺🌍 Russia & Middle East — demand pockets and halal markets
Trade snapshot & data:
- Middle East countries (Saudi, UAE, etc.) are large poultry and beef importers, often seeking halal-certified suppliers; Brazil and Brazil-linked exporters dominate many MENA markets.
Market dynamics & likely impacts:
- With EU protection for beef/poultry, Brazil and Mercosur suppliers remain the dominant cost-competitive choice for MENA. Any shift in U.S. market strategy is less relevant here unless U.S. suppliers push for halal credentialing and market penetration.
🇿🇦🌍 South Africa & Sub-Saharan Africa — importers with mixed sourcing
Trade snapshot & data:
- Many African markets rely on imports of poultry (processed, frozen) from Brazil, Ukraine, and local suppliers. EU and U.S. access is limited by price and standards.
Market dynamics & likely impacts:
- The EU exclusion keeps price-competitive suppliers (Brazil, Thailand, Ukraine) dominant in many African markets. Exporters from the EU/US will need targeted premium or value-added offers to gain share.
🌐 Overall market implications
- Short-term: The EU decision to keep beef & poultry protected maintains the status quo for most global meat flows — Brazil and Mercosur remain competitive suppliers to many importers; U.S. exporters will push growth in non-EU markets.
- Medium-term: Expect rerouting of trade flows (e.g., Brazil → Mexico, MENA → other suppliers) and price volatility in regions dependent on imported meat if supply redirections occur. Recent reports show exporters already reoptimizing routes.
- Long-term: Beef & poultry remain powerful bargaining chips. If quotas or sanitary convergences are negotiated later, gradual access could open — but regulatory alignment (hormones, processing methods) and political pressure will govern the pace.
Selected source notes (key sources used)
- USDA / U.S. export & production summaries (beef export values & volumes).
- Brazil export reports (ABIEC; record 2024 volumes & values).
- EU meat market data & dashboards (EU Commission / market snapshots).
- China customs & market reports (China import shares & values).
- Recent market commentary and Reuters reporting on tariffs and trade flow shifts.
📊 Economic Impact on Global Trade
Despite its political symbolism, the deal’s economic effects are mixed:
Winners:
- US carmakers gain better access to EU markets.
- Pork and dairy producers benefit from lower tariffs.
- Energy exporters profit as Europe commits to buying more US natural gas.
Losers:
- Beef and poultry farmers miss out on expanded market access.
- European exporters still face US tariffs on 70% of goods.
- Consumers may not see major price drops, especially for meat products.
🌍 Geopolitical Implications
This deal also reflects broader geopolitical shifts:
- The EU wants to avoid a trade war while diversifying energy imports from the US amid global tensions.
- The US is prioritizing strategic exports like LNG and industrial goods.
- Excluding beef and poultry highlights how food security and consumer protection still outweigh globalization pressures.
📌 Key Takeaways
- Beef and poultry remain protected sectors for both EU and US farmers.
- The deal reduces tariffs on cars, industrial goods, pork, and dairy.
- Despite concessions, the agreement is asymmetric, favoring US export growth.
- Future negotiations may focus on gradually opening beef and poultry quotas.
❓ Frequently Asked Questions (FAQs)
1. Why were beef and poultry excluded from the deal?
To protect domestic farmers and due to differences in food safety standards between the EU and US.
2. Which products benefit the most from tariff cuts?
Pork, dairy, potatoes, tomatoes, cocoa, and some industrial goods see the largest concessions.
3. Will beef and poultry be included in future deals?
Likely, but only under quota-based systems or conditional safety approvals.
4. How will this impact meat prices in Europe?
Minimal impact for now since beef and poultry tariffs remain unchanged.
5. Does this end EU-US trade tensions?
Not entirely. This is a temporary truce — digital taxes, energy policies, and meat imports remain contentious.