JBS Australia has reportedly scrapped forward contracts with King Island farmers just hours after former US President Donald Trump announced a 10% tariff on Australian beef exports.
The move has sparked concern across Tasmania’s farming sector, with TasFarmers president Ian Sauer urging producers to “cool their jets” while the situation unfolds.
Sauer said he would hope the forward contracts would be reinstated in the coming days.
The tariffs, part of Trump’s ‘Liberation Day’ announcement, target Australian exports to the US market, worth $378 million to Tasmania’s economy in the year to December 2024.
Sauer warned the fallout could ripple through the entire supply chain, with potential knock-on effects for abattoirs during the slower winter months.
Currently, 18% of Tasmania’s agricultural and seafood exports head to the United States, with beef and poultry topping Australia’s list of outbound products.
Premier Jeremy Rockliff has promised swift action to support affected businesses.
“The Tasmanian Government is closely watching the unfolding tariffs being implemented by the Trump administration,” he said.
“Our farmers work tirelessly to feed the nation and the world and we will always have their backs.”
The Premier is set to urgently convene a roundtable with impacted exporters to chart a path forward.
