A recently announced trade and investment agreement between the U.S. and Japan is being met with a sense of relief and optimism by the U.S. meat industry, as it solidifies access to one of the country’s most valuable export markets. The deal was finalized during a visit by Japan’s chief tariff negotiator to Washington, D.C., and follows up on a crucial agricultural agreement from the previous administration.
Dan Halstrom, President and CEO of the United States Meat Export Federation (USMEF), was in Tokyo when the agreement was announced and noted the positive reception. “I think there was a bit of relief in a Japanese trade,” he said, citing conversations with importers, distributors, and exporters. The deal, which also addressed the contentious issue of auto trade, helped ease concerns about potential trade retaliation from Japan. Halstrom emphasized the immense value of the Japanese market, which he described as the second-largest export market in the world for the U.S. In 2024, U.S. beef and pork sales to Japan combined for approximately $3.3 billion, a figure that has been consistently in that range.
The new agreement builds on the foundation laid by a 2020 trade deal, which was critical for putting U.S. red meat on a more competitive footing. “That phase one agreement in 2020 ut us all on a level playing field, even though our duties are higher than some other countries,” Halstrom explained. Currently, U.S. beef faces a 21.6% tariff to enter Japan, but that initial agreement ensured the U.S. was not at a severe disadvantage. The new deal is essential for at least maintaining that status quo. “The fact that we got this deal done, at least at the minimum, maintains that level playing field,” Halstrom stated, underscoring the importance of securing market access that wasn’t guaranteed just a few years ago.
For more information on the impact of this and other trade deals on the U.S. red meat industry, visit usmef.org.
