LIVESTOCK-CME cattle sink as Trump tariffs fuel fears of recession, retaliation

By Tom Polansek

CHICAGO, April 3 (Reuters) - Chicago Mercantile Exchange live cattle and feeder cattle futures fell sharply on Thursday as U.S. President Donald Trump's new tariffs fueled concerns about a recession and retaliation from other nations.

Global investors grappled with rising chances of an economic downturn and a sprawling trade war, after Trump on Wednesday announced a 10% tariff on most U.S. imports and much higher levies on dozens of other countries.

Broad-based selling spilled into livestock markets, as analysts said that economic weakness threatens demand for pricey beef. They added that retaliation to Trump's tariffs could hurt export sales of U.S. beef to major buyers such as Japan and South Korea.

CME June live cattle futures LCM25 fell 2.7 cents to close at 204.7 cents per pound after setting a contract high at 207.725 cents on Wednesday. May feeder cattle FCK25 sank 4.8 cents to 283.125 cents per pound.

Historically low U.S. cattle supplies in recent years have driven up imports of beef that is mixed with domestic supplies to make hamburger meat for retailers and restaurants. Now, Trump's tariffs threaten to raise prices for imports from nations including Australia, analysts said.

Australian beef farmers and traders said they would pass on the extra costs of U.S. tariffs to the American consumer.

"The biggest concerns for restaurant operators—from community restaurants to national brands—are that tariffs will hike food and packaging costs and add uncertainty to managing availability, while pushing prices up for consumers," said National Restaurant Association CEO Michelle Korsmo.

Weekly U.S. beef export sales were 9,300 metric tons for 2025, up 16% from the previous week but down 19% from the prior four-week average, the U.S. Department of Agriculture said. Sales to China remained minimal after Beijing last month allowed export registrations for U.S. beef facilities to expire.

Weekly U.S. pork export sales of 53,000 metric tons for 2025 were a marketing-year high, according to USDA.

CME June lean hog futures LHM25 still eased 0.975 cents to close at 95.55 cents per pound.