Trump has set his sights on U.S. meat prices, swinging his "iron fist" at the four giants

In the face of increasing political pressure and public concerns about the cost of living, the Trump administration has ordered an investigation into several of the largest meat processors in the United States, accusing these industry giants of illegally colluding to manipulate prices, harming the interests of ranchers and consumers.

On Friday afternoon, Trump announced this decision through his social media platform Truth Social, stating that he had requested the Department of Justice to "immediately begin an investigation" into these meat processing companies. Less than an hour later, Attorney General Pam Bondi confirmed on social platform X that the investigation had been initiated. This series of swift actions directly targets the few companies that have long dominated the U.S. beef market.

This news immediately triggered fluctuations in the stock prices of the related companies. Shortly after Trump's post, the stock prices of Tyson Foods and global meat giant JBS both fell to intraday lows. Although Tyson Foods' stock price rebounded by the close, ultimately rising 1.9%, JBS still closed down 3.6% that day, reflecting the market's direct response to the potential antitrust investigation.

This move comes as the White House faces immense pressure over the cost of living issues. In the recent off-year elections, the cost of living helped several Democratic candidates win, posing a challenge to the Trump administration, which has campaigned on reducing inflation. The investigation into meat prices is the latest measure taken by the Trump administration to demonstrate its determination to address the "affordability" issue.

White House Takes Action, Targeting Four Major Meat Companies

The target of the Trump administration's actions is very clear. The White House stated in a press release that JBS, Cargill, Tyson Foods, and National Beef control 85% of the U.S. beef processing market. Trump wrote in his post that these "largely foreign-owned" meat processors have driven up beef prices through "illegal collusion, price monopolization, and price manipulation," while American ranchers are blamed for the situation.

The White House stated that the investigation aims to "root out any illegal collusion, restore fair competition, and protect our food safety." By examining whether these companies engage in collusive pricing or capacity restrictions that violate antitrust laws, the government intends to directly intervene in market structure. Trump emphasized:

"Immediate action must be taken to protect consumers, combat illegal monopolies, and ensure that these companies do not profit at the expense of the American people."

Behind this investigation lies a profound political and economic backdrop. The Trump administration is struggling to cope with persistent inflationary pressures. Although price increases have slowed since he took office, the inflation rate remains stubbornly high. Data shows that the inflation rate rose to 3% in September, still above the Federal Reserve's target of 2%.

The cost of living issue has become a key political topic. In the recent elections, Democrats won by capitalizing on voters' concerns about affordability. In response, Trump claimed earlier on Friday that his administration is the "winner on affordability issues," blaming the previous administration for leaving behind an "unprecedented high inflation mess." The investigation into meat industry giants can be seen as the Trump administration's proactive move in the inflation "defense battle" to address voter concerns.

The market reacts, stock prices under pressure

After the announcement of the investigation by Trump, Tyson Foods and JBS's stock prices quickly fell to their lowest points of the day, reflecting investors' worries about potential fines, lawsuits, and even adjustments to business models stemming from the antitrust investigation.

Although market sentiment was somewhat digested during the trading session, Tyson Foods' stock price ultimately turned from decline to rise, closing up 1.9%, while JBS's stock price failed to recover, closing down 3.6%.

The antitrust investigation targeting meat giants is just part of the Trump administration's response to high prices. Earlier this year, due to a shortage of cattle in the U.S., beef prices reached an all-time high. High costs have been passed on to the restaurant industry, forcing steak restaurants to either reduce portion sizes or raise prices.

In recent weeks, Trump has repeatedly promised to lower beef prices. In addition to this investigation, he has also stated that he would consider increasing beef imports from Argentina to alleviate domestic supply pressures. Furthermore, this administration has taken action in other areas to reduce living costs for the public, including ongoing pressure on the Federal Reserve to lower interest rates to ease mortgage burdens, and announcing a plan this Thursday aimed at reducing the prices of obesity medications. These measures collectively form a comprehensive offensive by the Trump administration around "affordability" ahead of key election milestones