The Trump administration reopened a border crossing in Douglas, Arizona on Monday to allow cattle imports from Mexico, marking the first step in a broader initiative to address elevated beef prices. The USDA cited reduced concerns about the New World screwworm’s spread as justification for the action, with plans to eventually reopen additional crossings in New Mexico and Texas. Mexican President Claudia Sheinbaum confirmed the opening during a press conference in Mexico City.
The administration has made beef prices a policy priority, with President Trump announcing Friday that up to 331,000 tons of imported ground beef would enter the U.S. tariff-free at below-market prices over a 90-day period. The border to Mexican livestock was closed in May 2025 as part of the government’s response to the screwworm, a parasitic threat that contributed to cattle supply constraints. Mexico traditionally supplies approximately 1.1 million head of cattle annually, representing about 3% of U.S. cattle supplies.
Despite these policy moves, agricultural economists expressed skepticism about near-term price relief. Derrell Peel of Oklahoma State University noted that the phased reopening approach means Mexican imports will take months to return to traditional levels, and he does not expect measurable impacts on cattle or beef prices in the short term. Beef prices have risen nearly 57% from July 2021 to July 2026, with ground beef averaging $6.89 per pound in July compared to $4.39 five years earlier.
The U.S. cattle herd has declined to 86.2 million head on January 1st, the lowest level in 75 years, driven by prolonged drought in cattle-producing regions and historically low cattle prices over the past two decades. The shortage has strained beef processing capacity, with major processors including Tyson Foods announcing plant closures. Agricultural economists attribute the current supply constraints to accumulated impacts of weather patterns, economic conditions affecting ranching operations, and structural changes in the industry, suggesting that border reopening alone may provide limited relief to consumers facing elevated meat costs.
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