President Trump announced Friday that he plans to direct the Justice Department to open an investigation into the meatpacking industry for suspected price manipulation and collusion.
Rising Costs and Consumer Impact
Although Trump has repeatedly said grocery prices are improving, he acknowledged that beef remains one of the biggest household expenses. The decision to pursue a criminal probe reflects growing frustration over high food costs, which have become a major economic and political concern. However, analysts note that such an investigation alone may not be enough to reverse the steep price increases seen over the past year.
Trump’s Remarks
In a post on Truth Social, Trump accused large meatpacking corporations of driving up prices artificially while cattle ranchers are being unfairly blamed. “Immediate action is needed to protect consumers, fight illegal monopolies, and prevent corporations from profiting at the expense of hardworking Americans,” he wrote. He added that something seemed “suspicious,” pointing out that cattle prices were dropping while beef prices continued to rise.
The Broader Context
According to recent federal data, ground beef prices have surged roughly 13% from last year—one of the sharpest increases in the Consumer Price Index. Several long-term issues are contributing to the problem: persistent drought, smaller cattle herds, workforce shortages, and lingering supply chain disruptions from the pandemic.
Trump has also floated the idea of expanding beef imports from countries such as Argentina, though this proposal faces opposition from within the U.S. beef industry, which has traditionally been one of his strongest allies.
Industry Concentration and Global Ownership
In his comments, Trump accused “foreign-owned meatpackers” of distorting the market and threatening America’s food supply. Of the four major companies that control over 80% of the U.S. beef market, two—Tyson Foods and Cargill—are American, while the others, JBS and National Beef, are owned by Brazilian corporations. Notably, National Beef was acquired by Brazil’s Marfrig during Trump’s first term.
Legal Background
The meatpacking industry has faced similar scrutiny before. In 2023, Tyson and Cargill agreed to pay a combined $87.5 million to settle lawsuits alleging price-fixing in the beef market—while denying any wrongdoing. Earlier in the year, JBS reached an $83.5 million settlement in a separate case over alleged manipulation of cattle prices.
Trump’s renewed focus on the issue signals a broader effort to position himself as a defender of American consumers and farmers, as concerns over inflation and food affordability continue to dominate public debate.