The White House reportedly pressured major grocery chains to lower beef prices ahead of the July 4 Independence Day holiday. The Trump administration is working hard to control inflation, urging price reductions for beef following rising fuel costs, amid low public approval ratings ahead of this year's midterm elections.
The Wall Street Journal (WSJ) reported on July 7 that officials from the U.S. Department of Agriculture (USDA) recently contacted major grocery chains, including Walmart, Kroger, and Albertsons, to discuss beef pricing. According to the report, Tate Bennett, chief of staff to Agriculture Secretary Brooke Rollins, spoke with these companies last week to inquire about beef price trends leading up to the holiday, a peak time for hamburger demand in the U.S.
During the conversation with the USDA, Walmart, the largest grocery retailer in the U.S., indicated that it already planned to lower prices on several items, including beef, for the summer season. Walmart began implementing price reductions in stores on June 29 and prepared a related press release.
This plan was communicated to the White House through the USDA. Subsequently, President Donald Trump announced on July 6 via Truth Social that Walmart had agreed to lower prices at the request of his administration, highlighting it as a success in addressing inflation.
Trump stated, "I have been informed that Walmart will significantly reduce prices in time for the 250th anniversary of our nation," calling it "great news." He emphasized that the price of ground beef per pound would drop by nearly 15% and urged other retailers to follow Walmart's lead.
Walmart's actual price reduction for its standard ground beef product is approximately 12%. The price for 73% lean ground beef will decrease from $6.74 to $5.94 per pound. Walmart also announced discounts on thousands of items, including groceries, beverages, and household goods this summer. However, the official announcement did not mention the White House or President Trump directly, describing it instead as a "price investment to reduce the burden on frequently purchased items."
Voter Discontent Grows
WSJ noted that this contact came after months of discussions between the Trump administration and grocery chains, pointing out that it is unusual for a Republican administration to directly pressure the industry for price reductions amid rising voter dissatisfaction with high inflation.
Beef prices are considered a key contributor to food inflation in the U.S. Due to drought and rising costs, the number of cattle raised on U.S. pastures has fallen to its lowest level in 75 years, while consumer demand for beef remains strong, continuing to exert upward pressure on prices.
According to the U.S. Department of Labor, the price of ground beef rose 12% in May compared to a year earlier. Prices for ground beef and ribeye have reached record highs this year. Despite some food prices, such as eggs, declining, the strength of beef prices continues to raise concerns about food inflation.
As a result, the Trump administration and the Republican Party are facing significant challenges ahead of the midterm elections. The administration is also pressuring the meat processing industry to stabilize beef prices. After Trump raised the issue on Truth Social last year, the U.S. Department of Justice launched an investigation into the four largest meat processing companies. Recently, the administration announced it would provide up to $500 million to support small meat processors in maintaining beef production.
WSJ reported that Trump is demanding reductions not only in beef prices but also in gasoline prices, the introduction of credit card interest rate caps, and reductions in drug prices. With living costs becoming a key issue ahead of the November midterm elections, the Trump administration's pressure on the industry for price reductions appears to be expanding.
Earlier, on June 29, Trump claimed on Truth Social that "gas stations must immediately lower prices," arguing that gasoline prices in the U.S. have not sufficiently decreased despite falling international oil prices.
* This article has been translated by AI.
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