President Donald Trump has asked the Justice Department to launch an investigation into the meatpacking industry, accusing it of “raising beef prices through illegal collusion, price fixing, and price gouging.”
“I am asking the Department of Justice to act quickly,” Trump wrote on social media on Friday. “Immediate action must be taken to protect consumers, combat illegal monopolies, and ensure these companies do not make criminal profits at the expense of the American people.”
Shares of the world’s largest meatpacker, JBS NV, fell as much as 6.2% after Trump’s comments, while shares of Tyson Foods Inc. fell as much as 6.2% after Trump’s comments. By up to 2% before cutting losses to turn higher.
High cost of living Take control Voters fear this week in an off-year election, pushing 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, after which his advisers pledged to focus more on affordability.
Beef has been Trump’s latest target to curb food inflation, as retail ground beef prices have risen to record levels. The U.S. cattle herd has shrunk sharply as ranchers have faced rising interest rates, expensive feed, and drought. Rebuilding the herd will be a years-long process.
However, Trump sought to place the blame on large companies that process beef for consumers.
“While cattle prices have dropped dramatically, the price of packaged beef has gone up — so, you know something is ‘fishy.’ We will get to the bottom of it very quickly. If there is criminality, the people responsible will pay a heavy price!” Trump wrote in a later post.
Read more: Trump sparks rare GOP reaction by buying Argentine beef
The president’s handling of meat prices has drawn opposition from allies in farm states, who say his plan to quadruple the duty-free quota on Argentine beef risks undermining American farmers.
Trump’s decision to impose 50% tariffs on Brazilian products due to diplomatic disputes also affected beef exports. JBS and another meat giant, Minerva SA, are based there.
The post Trump asks Justice Department to probe meatpackers on prices first appeared on Investorempires.com.
