Who’s buying all the beef?

Summary

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Podcast Summary: The Indicator from Planet Money

Episode: Who’s Buying All the Beef?
Date: November 24, 2025
Hosts: Darian Woods, Waylon Wong
Guest: Marcelo Savelli (Manager, El Gauchito Butcher), Wendy Cutler (Senior Vice President, Asia Society Policy Institute)

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Episode Overview

This episode explores what it really means when political leaders announce big international purchases or investments—specifically digging into the recent news that the US will import more beef from Argentina. The hosts unravel common misunderstandings about international trade deals, clarify who actually "buys the beef," and extend the analysis to large foreign investment pledges from countries like Japan, South Korea, and China.

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Key Discussion Points & Insights

1. Decoding the US-Argentina Beef Deal

• Context:
  President Trump spoke about increasing US imports of Argentine beef, promising to "buy some beef from Argentina," sparking listener questions about what this actually means.
  (00:15–00:41)

• Listener Question:
  Sebastian Sanchez in Massachusetts, who grew up in Argentina, asks, “How does the US Government actually do this?” (00:41)

• Host Clarification:

  • The US government is not directly buying or stockpiling beef for federal ballrooms, nor forcing butchers to buy Argentine beef.
  • Instead, it’s about lifting quota limits—making it cheaper for private importers to source beef from Argentina.
    (01:26, 04:07)

  Quote:

  "Basically, the US Government is promising to lift a quota on Argentine beef...And by raising that quota significantly, it'll be cheaper for businesses like El Gauchito to buy more beef."
  — Darian Woods (04:07)

• Butcher's Perspective:
  Marcelo Savelli, manager at El Gauchito in NYC, showcases signature Argentine beef cuts, explaining what sets them apart:

  "This is the picanha... flap steak and the matambre, which is the roast beef that we usually put on the grill." — Marcelo Savelli (03:11)

  He notes cattle are grass-fed initially but finished with grain for size:

  "Initially, it's not fully 100% grass fed. At the end, they grain feed it to make it a little bigger because the cows are much smaller in Argentina."
  — Marcelo Savelli (03:53)

  He’s supportive but not certain about how the deal changes things:

  "Yeah, why not?" (re: selling more Argentine beef) (04:06)

• Host Takeaways:
  The announcement is really a message simplification. It's still American businesses privately buying; the government changes the rules, not the buyers.
  (04:45)

  Quote:

  “Those political lines about we’re buying the beef really just message simplification.”
  — Waylon Wong (04:45)

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2. How State-Led Economies Structure Trade (China Example)

• Comparison with China:
  In countries with state-run enterprises (like China), government control means direct coordination on imports. For instance, state companies buy (or stop buying) US soybeans when instructed.
  (04:53)

  Quote:

  “State owned companies like Sinograin and Cofco import almost all the soybeans. And if the Chinese government wants to put pressure on the US, Xi Jinping can tell these companies to buy from Brazil rather than the U.S.”
  — Darian Woods (05:06)

  The dynamic is less about market forces, more about direct government orders.

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3. Foreign Investment Pledges: What Do They Really Mean?

• Listener Question:
  Claire LeCornu asks about “countries committing to invest hundreds of billions of dollars in the US” following high-profile summits. (05:51–05:59)

• Expert Interview with Wendy Cutler:
  Wendy Cutler, trade negotiator, explains two main mechanisms behind foreign investment announcements:

  • Private Company Commitments:
    Governments persuade national champions (like HD Hyundai) to make public pledges to invest in the US—sometimes plans they had anyway, but timed for political impact. (07:09)

    "The conversation would go along the lines of...The United States has made it clear that they want pledges of increased foreign direct investment in the United States. Hyundai, can I count on you to pony up X billion dollars and announce a new plant in the United States?"
    — Wendy Cutler (07:09)

  • Motivations:
    Pledges can curry favor with political leaders. But they’re not binding—companies often issue press releases rather than commit in contractual terms.

    "Frankly, some of the companies that are pledging view these as pledges...maybe some of them are hoping that...there’ll be a new administration that won’t really care about these pledges."
    — Wendy Cutler (08:13)

  • Joint Investment Funds:
    Some deals now involve joint US-foreign funds, administered by government agencies from both countries, to target investment in specific US sectors.

    "There’s now a specific fund jointly overseen by US and Japanese government agencies...Japan channels both private and public money into areas like energy, semiconductors or shipbuilding."
    — Darian Woods (08:47)

• Skepticism:
  Wendy advises skepticism—pledges are not always followed by real investment over time:

  “I think it’s easy to make a pledge and it’s easy to come up with big numbers. But time will tell if these investments actually materialize. Many will, but I suspect some won’t.”
  — Wendy Cutler (09:11)

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Notable Quotes & Memorable Moments

• “I grew up in Argentina and always miss Argentine beef as it is a staple of Argentine barbecue, Asado...”
  — Sebastian Sanchez (00:41)

• “So does that mean the new White House ballroom is going to have a giant freezer of these prized cuts?”
  — Darian Woods (00:58)

• “Argentine beef has this distinctive taste. It's different to American beef, but ... it's not for everybody.”
  — Marcelo Savelli (03:44)

• “For deals with countries where the state is more hands on, like China, it might involve the government directing state owned enterprises to buy goods like soybeans.”
  — Waylon Wong (09:24)

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Timestamps for Key Segments

• 00:15: Introduction to the beef import topic
• 00:41: Listener question about US importing Argentine beef
• 02:51: Visit with Marcelo at El Gauchito butcher
• 04:07: Explanation—lifting quotas isn’t direct government purchasing
• 05:06: Example of state-orchestrated imports (China and soybeans)
• 06:17: Listener question on foreign investment pledges
• 07:09: Wendy Cutler explains government-company coordination
• 08:47: Joint US-foreign investment fund mechanism
• 09:11: Skepticism about the reality behind big investment numbers
• 09:24: Recap—how different countries structure spending in trade deals

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Episode Takeaways

• When politicians say “we’re buying beef” from another country, it usually means opening market access for private industry—not literal government purchasing.
• In state-run economies, governments direct trade; in the US context, changes are about tariff and quota rules to incentivize private action.
• Big foreign investment pledges are typically either voluntary company announcements (possibly for publicity) or joint funds with some state involvement. These should be viewed critically, as the realized investments often trail initial headlines.

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Transcript

[Sebastian Sanchez]

Npr.

[Darian Woods]

This is the Indicator from Planet Money. I'm Darian Woods.

[Waylon Wong]

And I'm Waylon Wong. In October, we heard some good news for beef lovers. A White House official told Reuters that the US Is going to ratchet up beef imports from Argentina. This was after President Trump talked to reporters about possibly buying Argentine beef.

[Darian Woods]

We would buy so beef from Argentina. If we do that, that will bring our beef prices down. This sparked a question from Indicator listener Sebastian Sanchez in Massachusetts.

[Sebastian Sanchez]

I grew up in Argentina and always miss Argentine beef as it is a staple of Argentine barbecue Asado and last month I saw the White House announce they plan on quadrupling the amount of Argentine beef the US Purchases. How does the US Government actually do this?

[Darian Woods]

I love this question because President Trump's words in October were we would buy some beef from Argentina. So does that mean the new White House ballroom is going to have a giant freezer of these prized cuts?

[Waylon Wong]

Or is the government going to force butchers to order from Argentina?

[Darian Woods]

Other deals have raised similar questions from our listeners. For example, Japan and South Korea are pledging to invest in the US as part of their trade deals. So who's actually doing the investing?

[Waylon Wong]

Today on the show, we've got the answers. We visit an Argentine butcher and call up a seasoned trade negotiator to find out who spends the money.

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[Darian Woods]

To learn about how butchers were reacting to the Argentine beef deal, we went to one in New York with a cute name.

[Marcelo Savelli]

El Gauchito.

[Darian Woods]

El Garcito Little Cowboy Translates okay, yeah yeah, yeah. El Garchito's manager is Marcelo Savelli, who showed me the Argentine beef cuts all laid out inside the counter marked with the country's sky blue flag ribeye.

[Marcelo Savelli]

This is the picanha. And then we have basilo flap steak and the matambre, which is the roast beef that we usually put on the grill.

[Waylon Wong]

Gary and I used to live in Buenos Aires, so I ate a lot of steak. And there was this one restaurant I'd always take visiting friends to because they would do this parlor trick where the waiters would cut your steak in front of you with the spoon to show how tender it was.

[Darian Woods]

That might be coming to the U.S. more. Marcelo Savelli says Argentine beef has this distinctive taste. It's different to American beef, but, you.

[Marcelo Savelli]

Know, still it's, you know, it's not for everybody.

[Waylon Wong]

Well, it is for Weyland Wong. Part of Argentine beef's famous flavor is that a lot of the cattle is raised eating grass.

[Marcelo Savelli]

Initially, it's not fully 100% grass fed. @ the end, they grain feed it to make it a little bigger because the cows are much smaller in Argentina.

[Darian Woods]

Marcelo said he'd be happy to play his part in Portugal. More Argentine beef, of course, if it's possible.

[Marcelo Savelli]

Yeah, why not?

[Darian Woods]

But he also said he had no idea how the White House announcement would actually work. So we looked into the details and the answer is fairly simple. Basically, the US Government is promising to lift a quota on Argentine beef. There is a certain amount that's allowed in each year, and then above that is charged a 26% duty. And by raising that quota significantly, it'll be cheaper for businesses like Elgatito to buy more beef.

[Waylon Wong]

So it is still private companies buying the meat. We explained this to our listener, Sebastian.

[Darian Woods]

Does that make sense?

[Sebastian Sanchez]

That does make sense. So they would purchase more because it's cheaper?

[Waylon Wong]

Yeah, basically no extra tariffs. Those political lines about we're buying the beef really just message simplification.

[Darian Woods]

So that's Argentine beef coming into the US but in a country where the state actually runs more companies like China, the answer to these types of questions might be different. Take soybeans. When the US hiked tariffs on China, suddenly soybean farmers found they weren't getting any chines purchases. Now, in this case, it's relatively easy for the Chinese government to basically flick a switch. State owned companies like Sinograin and Cofco import almost all the soybeans. And if the Chinese government wants to put pressure on the US Xi Jinping can tell these companies to buy from Brazil rather than the U.S. and if China and the U.S. sign a deal making up well then Beijing can tell them to buy soybeans from the US Again. Of course this is all complicated in the real world. There is right now a huge glut of soybeans in China. It's stockpiled tons of soybeans from South America. Earlier this year.

[Waylon Wong]

We got a related question in the indicator inbox from Claire LeCornu. Claire wrote in about other countries pledging to spend lots of money here in.

[Sebastian Sanchez]

The US My question is I keep hearing about countries that have committed to invest hundreds of billions of dollars in the U.S. for example, after Trump's recent trip to China, he received commitments of investment from JAP and South Korea. What does it mean for a foreign country to invest in the us? What does that actually look like?

[Darian Woods]

To answer this question, we spoke to Wendy Cutler. Wendy is senior Vice President at the Asia Society Policy Institute and has worked on her fair share of trade deals.

[Wendy Cutler]

Korea Free Trade Agreement, the Trans Pacific Partnership Agreement and I negotiated with China for many, many years.

[Waylon Wong]

Those are the types of deals that cover all kinds of aspects of both countries economies from labor standards to copyright law. And getting to these deals is a much deeper than what we've seen recently where we have these agreements that are just a few pages long. I chatted with Wendy earlier this year about that.

[Darian Woods]

Wendy says you can think of basically two main ways this investment is happening. The first is private companies like HD Hyundai pledging spending. HD Hyundai has pledged to spend billions of dollars improving American shipyards. Wendy walked us through how the South Korean government might have gotten that investment commitment.

[Wendy Cutler]

The conversation would go along the lines of we are meeting again with the United States to negotiate a trade agreement. The United States has made it clear that they want pledges of increased foreign direct investment in the United States. Hyundai, can I count on you to pony up X billion dollars and announce a new plant in the United States?

[Waylon Wong]

Wendy says these announcements make sense for the companies, firstly because they may have been planning them anyway because foreign companies.

[Wendy Cutler]

Accrue benefits by investing in the United States. However, the numbers that are being pledged now to kind of placate our president who loves big numbers and big investments. This is. We're in a whole different dimension of foreign direct investment now.

[Darian Woods]

And another motivation for these companies is that a big announcement is generally helpful for them to curry favour with President Trump. And finally, even if the investment doesn't really make business sense, well, writing a press release is not a binding contract.

[Wendy Cutler]

I think some of the companies that are pledging frankly view these as pledges. And given that actual investments in the United States take multiple years, maybe some of them are hoping that over time either this administration will forget about their pledge or there'll be a new administration that won't really care about these pledges.

[Waylon Wong]

And there's a second form of investment as part of these deals.

[Wendy Cutler]

What the Trump team is doing a bit differently is deals with countries like Japan and Korea to set up an investment fund.

[Darian Woods]

So for example, there's now a specific fund jointly overseen by US And Japanese government agencies. Wendy says this fund works by picking projects for investment in the US and then Japan channels both private and public money into areas like energy, semiconductors or shipbuilding. That said, Wendy suggests looking at all these huge commitments with caution.

[Wendy Cutler]

I think it's easy to make a pledge and it's easy to come up with big numbers. But time will tell if these investments actually materialize. Many will, but I suspect some won't.

[Waylon Wong]

So in all these trade deals, how the spending is done varies. For things like Argentine beef, that's just changing the rules to motivate private businesses. For deals with countries where the state is more hands on, like China, it might involve the government directing state owned enterprises to buy goods like soybeans. And for the investment pledges involving mixed economies like Japan and South Korea, the deals are kind of this hybrid blending carrots, sticks, persuasion and those press releases with the big numbers.

[Darian Woods]

If you have a question for us, you can email [e-mail] or if it's more of a comment, leave us a review in your podcast app. This episode was produced by Koopa Cats 4 Kim with engineering by Robert Rodriguez. It was fact checked by Sierra Juarez. Cake and Cannon edits the show and the indicator is a production of npr.

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