Trump Stirs Up a Fight With Ranchers Over Argentine Beef

This is Washington Edition, the newsletter about money, power and politics in the nation’s capital. Today, congressional correspondent Alicia Diaz looks at the push back the White House is getting over beef imports. Sign up here. Email our editors here.

Cattle Roundup

No US president has ruffled the feathers of other world leaders quite like President Donald Trump.

But his relationship with one — Argentina’s Javier Milei — is stirring ire at home instead, and among usually compliant Republicans in Congress.

First there was a $20 billion financial rescue extended by the US Treasury to bolster Milei, a close Trump ally, as his party faces a crucial midterm election. That triggered grumbling among the GOP’s America First contingent.

Then Trump messed with the ranchers.

Trump’s announcement that he was raising the quota for Argentine beef imports drew almost immediate pushback from his staunch supporters across America’s sprawling ranch lands as well as their representatives in Washington — almost uniformly Republican.

“It’s created a lot of uncertainty in that market. So I’m hoping that the White House has gotten the message,” Senate Majority Leader John Thune, who hails from South Dakota, said yesterday.

Trump has framed his decision as a way to bring food prices down for consumers, as he had promised during his campaign. In the August consumer price index report, food prices in general rose 3.2% over last year, but the cost of beef and veal was up 13.9%.

The criticism, though, seems to have hit home.

Trump posted on Truth Social yesterday that cattle ranchers “don’t understand” that his tariff policy has benefited their industry, including a 50% duty on beef from Brazil, the world’s biggest beef exporter. “If it weren’t for me, they would be doing just as they’ve done for the past 20 years — Terrible!”

And the administration announced it would open more federally owned land to graze cattle, increase insurance subsidies and slash costs for small meat processors.

Ranchers argue that they would rather lower beef prices by increasing their own supply.

“The answer is let the markets continue to recover,” Republican Senator Steve Daines of Montana said, adding that ranchers are “finally getting to the point where they’re making money again and they’re very concerned about these actions.”

Several Republican senators said they’ve spoken this week with Agriculture Secretary Brooke Rollins, Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer to air their concerns on the issue. But they said said they’ve gotten no indication that the White House plans to walk back on importing more beef. — Alicia Diaz

Don’t Miss

The Trump administration is in early-stage conversations with quantum computing companies to discuss potential financial support for an industry that’s part of the growing race with China for technology supremacy.

Trump and Chinese President Xi Jinping will meet next Thursday at the Asia-Pacific Economic Cooperation summit, as the leaders of the world’s two largest economies look to deescalate a simmering trade war.

The president pardoned Binance co-founder Changpeng Zhao, who went to jail for failing to safeguard the world’s largest crypto exchange against money laundering.

Trump said he’s calling off the deployment of federal troops to San Francisco after speaking to billionaires Marc Benioff and Jensen Huang, as well as the city’s mayor, Daniel Lurie.

Senate Democrats blocked a Republican measure aimed at paying military troops and some federal workers during the US government shutdown in the latest sign there’s no break in the spending deadlock.

The political firestorm over the looming cutoff in food-aid funding intensified as lawmakers from both parties sounded alarms and some states warned retailers of its consequences.

Transportation Secretary Sean Duffy warned that flight disruptions would continue across the US as the government shutdown drags into its fourth week and air traffic controllers and TSA agents go without pay.

Virginia lawmakers are looking to redraw the state’s congressional maps, the latest push by Democrats as the party seeks to counter similar moves by Republicans in the race to win a House majority in the 2026 midterms.

Sales of previously owned homes in the US rose modestly last month as lower mortgage rates and tamer price gains sparked some activity in the nation’s long-stagnant housing market.

Miami Heat guard Terry Rozier, Portland Trail Blazers head coach Chauncey Billups and at least 30 other people were arrested and charged as part of a sprawling federal sports gambling probe.

Watch & Listen

Today, Bloomberg Television’s Balance of Power early edition at 1 p.m. featured Big Take podcast host David Gura’s interview with House Democratic leader Hakeem Jeffries about the shutdown, New York City politics and Trump.

On the program at 5 p.m., hosts Joe Mathieu and Julie Fine talk with Republican Senator Pete Ricketts of Nebraska about the shutdown and the president’s plan to allow more beef imports.

On the Trumponomics podcast, host Stephanie Flanders, Bloomberg’s head of government and economics, speaks with Gavekal Dragonomics’ Arthur Kroeber about how the latest US-China trade tit-for-tat reveals Beijing’s growing leverage in its standoff with Washington. Listen on Apple Podcasts, Spotify or wherever you get your podcasts.

Chart of the Day

Despite speculation that tariffs are starting to work their way into the price of goods, US companies are fairly blasé about inflation — at least based on comments from executives in earnings releases. Mentions on company calls of prices or synonyms for inflation have fallen to the lowest level in years. The disconnect may show that inflation just isn’t that big a deal for firms as they experience better-than-expected earnings. The official read on inflation — the September consumer price index report — comes out tomorrow after having been delayed because of the shutdown. Although inflation has been stuck above the Federal Reserve’s goal, officials are expected to announce their second rate cut of the year when the central bank’s rate setting committee meets next week. — Alex Tanzi

What’s Next

The delayed consumer price index for September is set to be released tomorrow.

The University of Michigan’s final read of consumer sentiment for the month will be released tomorrow.

The summit of the Association of Southeast Asian Nations opens Saturday in Malaysia.

The Federal Reserve’s rate-setting committee meets Oct. 28-29.

The Conference Board’s index of consumer confidence for this month will be released Oct. 28.

The S&P Cotality Case-Shiller home price index for August will be reported Oct. 28.

Pending home sales in September will be reported Oct. 29 by the National Association of Realtors.

Mortgage applications from the Mortgage Bankers Association will be reported on Oct. 29.

The Asia-Pacific Economic Cooperation leaders summit opens Oct. 31.

Seen Elsewhere

Russia secretly used front companies to acquire high-tech equipment from the US and Europe to build a surveillance net meant to protect its submarines in the Arctic, the Washington Post reports.
Mosquitoes have been discovered on Iceland for the first time, which scientists say is a sign of how rapid climate change and globalization are affecting the geographically isolated country, the New York Times reports.
About 4 in 10 adults in they US say they are extremely or very worried about the environmental impact of artificial intelligence, which puts high demands on energy and water, according to the Associated Press.