In the latest buzz, Treasury Secretary Scott Bessent has made some strong statements connecting South American cattle imports to recent outbreaks of screwworm, which he believes have contributed to climbing beef prices across the United States. Still, critics have a different take, saying the issues stem from drought and various problems in the supply chain.
In reaction to the situation, the Trump administration has decided to halt most of the cattle imports from Mexico and is offering tariff exemptions to help alleviate some pressure. The screwworm in question, known as the New World screwworm (NWS), has caused real concern since its presence was confirmed in northern Mexico’s Nuevo Leon – actually fewer than 70 miles from the Texas border.
In response, Mexico has tightened its rules surrounding livestock movements internally and is mandating preventive treatments to control the outbreak.
Pricing Pressures on Beef
Bessent also pointed out that those rising beef prices are connected to SARS screwworm outbreaks linked with livestock that is being transported by migrants heading northward. He reflected, “Beef is a critical product, and we’re paying special attention to this problem. The beef market is unique and goes through long cycles; we’re facing a perfect storm due to circumstances we’ve inherited.”
It’s worth noting there’s currently no widespread outbreak of screwworms affecting livestock in the U.S., nor extensive human cases reported.
Slumping Imports and Rocketing Prices
While officials have announced exemptions on tariffs and are boosting imports of beef from Argentina to help stabilize prices, many analysts warn that this relief might be short-lived due to rebuilding herds and ongoing drought conditions.
As Bessent sums it up, “The beef market has its quirks; it’s just how it operates over time, and what we now see is a challenging situation—a part of which we’ve taken on from our predecessors.” He further pointed out that the current administration will not trivialize the financial feelings of Americans, unlike the previous one.
Policy Strategy and Overall Impact
Bessent mentioned that true improvement in Americans’ purchasing power will hinge on growth adapted through new policies. He talked about how the recently passed One Big, Beautiful Bill provides benefits. As the IRS commissioner, he highlighted changes like no taxes on tips, overtime, or Social Security that will positively impact working Americans. This could lead to better refunds as well.
Wrapping up, Bessent voiced hopes that by the early months of (‘26), Americans would see their paychecks adjust as withholdings change, which could push real incomes higher. He predicts a bend in the inflation upward trend, allowing Americans to truly notice a difference when their personal inflations match real earnings.
The stark reduction of Mexican cattle imports in the U.S.—from 1.2 million down to merely 230,000—is a testament to the profound disruption occurring right now.
This piece was originally presented by our content ally, Modern Newsstand LLC.
