Eggs: The New "Bitcoin" in the U.S. Market Amid Tariff Wars

By Liam Huang

Translated and Edited by Cheryl L.

Trump's Tariff Policies Are Exacerbating the U.S. Egg Shortage

At the U.S.-Mexico border, enforcement officers are accustomed to intercepting drugs and illegal immigrants, but a surprising new challenge has emerged—egg smuggling.

According to The Wall Street Journal, U.S. Customs and Border Protection (CBP) officers in El Paso, Texas, recently seized a truck carrying 29 kilograms of methamphetamine alongside a large quantity of smuggled eggs, cleverly hidden in car seats and tires.

Egg smuggling is on the rise. This year alone, El Paso has recorded around 90 cases of egg smuggling, while nationwide cases have increased by 36% compared to last year. In San Diego, the number of incidents has more than doubled. Beyond the border, thefts have also surged: in February, Pennsylvania saw a shocking heist involving 100,000 eggs worth over $40,000, while a Seattle café reported the theft of 540 eggs in a separate incident.

Eggs, a staple food, are now being smuggled alongside drugs due to soaring prices in the U.S. In February, egg prices surged 58.8% year-over-year, reaching nearly $8 per dozen in some areas and over $10 in others. In contrast, eggs in Mexico cost only about a third of U.S. prices. Supply shortages have led to rationing in grocery stores, and some Americans are turning to unconventional solutions, such as renting hens to ensure a steady supply of eggs.

In the midst of a tariff-driven economic crisis, eggs are emerging as the new "Bitcoin"—a scarce, high-value commodity beginning to influence cross-border trade.

The Root Cause of the "Egg Crisis": Avian Flu and Policy Strains

The "egg crisis" stems from a highly pathogenic avian influenza (HPAI) outbreak in late 2024. USDA data shows over 6 million hens were culled in California alone, with Indiana and Ohio among the hardest-hit states. Farmer John Parker, who lost 150,000 chickens, said it would take six months to recover.

Adding to the strain, "cage-free" laws in 10 populous states, including California and Massachusetts, have tightened supply. While more humane, these policies make farms more vulnerable to outbreaks, slowing recovery. Analyst Brian Earnest noted, "Replenishment after outbreaks is painfully slow."

Meanwhile, demand for eggs is rising due to high-protein diets and all-day breakfast chains. The USDA predicts shortages may last through 2025, depending on flu containment and industry recovery.

Amid the crisis, Cal-Maine Foods, a leading egg producer, saw its stock surge 50% over the past year.

"Tariff Woes" Worsen the Egg Shortage

Amid the domestic egg shortage, the U.S. sought international help in March, reaching out to European countries like Denmark, but was met with refusals. USDA data shows over 1.6 million dozen eggs were imported in the first two months of 2025. Agriculture Secretary Brooke Rollins publicly stated that the government plans to import eggs from Turkey and South Korea to ease the shortage.

However, the Trump-era "reciprocal tariff" policy has complicated these efforts. High tariffs on egg-exporting countries like Turkey and South Korea have significantly raised import costs. Rollins warned that this could lead to further price hikes, with retailers likely passing the burden onto consumers already struggling with soaring egg prices.

In the midst of the tariff war, eggs have also found their way onto politicians' negotiation tables. Indonesia's Food Coordination Minister, Zulkifli Hasan, stated that Indonesia has significant potential to supply eggs to countries affected by avian flu, including the U.S. These eggs could become a bargaining tool in negotiations over the U.S.'s 32% reciprocal tariff on Indonesian goods.

Eggs, The New Bitcoin

In an unexpected twist, eggs in the U.S. have become a "hard currency." A tech worker in Silicon Valley joked, "We spend our days discussing how to change the world with AI, yet we queue at night to buy a carton of eggs, which are more stable than the Bitcoin I hold." Similar to Bitcoin's fixed supply of 21 million, the U.S. egg market is facing a severe supply shock. The avian flu has wiped out millions of hens, reducing production drastically — an event comparable to Bitcoin's "halving," where mining rewards are cut, restricting new supply.

This scarcity has led to a booming "egg arbitrage" market. At the U.S.-Mexico border, smugglers purchase eggs in Mexico for $1.70 per dozen and resell them in the U.S. for $8 or more, capitalizing on a profit margin exceeding 400%. This practice mirrors Bitcoin traders exploiting price differences, such as the "Kimchi Premium," where Bitcoin prices in South Korea often exceed global averages by up to 20%. Arbitrage, whether in digital assets or physical goods, thrives on supply-demand imbalances.

Meanwhile, backyard chickens have become the new "mining rigs." In response to skyrocketing prices, many Americans have started raising chickens at home to achieve "egg self-sufficiency." One Meta employee, for instance, was humorously dubbed "truly wealthy" by colleagues for producing his own eggs.

Egg smugglers today resemble the early days of underground Bitcoin exchanges, both navigating regulatory loopholes to profit from price disparities. However, the fundamental difference lies in their value systems: Bitcoin's worth is built on consensus, while eggs derive their value from basic survival needs.

With egg prices reaching $6 per piece in some markets, questions arise about the future of everyday essentials. Could inflation, supply chain disruptions, and geopolitical tensions turn more necessities into "hard currencies"? On April 9, the U.S. imposed a 104% tariff on Chinese goods.

A quote from Karl Marx’s Das Kapital resonates here: "With 10% profit, capital is used everywhere; with 20%, it becomes active; with 50%, it leads to risky ventures; with 100%, laws are ignored; and with 300%, it defies all risks, even the gallows."

Driven by profit, the U.S.-Mexico border may soon see an influx of Chinese goods. The "egg crisis" is a microcosm of a broader economic shift. A new storm is brewing, and this is only the beginning.