Brazilian beef producers breathe a sigh of relief over the prospect of Trump’s new tariffs

Brazilian beef companies do not expect to be affected by possible new tariffs from President Donald Trump’s administration because of low U.S. cattle inventories and the significant tariff already in place on those exports, Reuters reported.

Roberto Perosa, head of Brazil’s beef exporters association ABIEC, said in an interview on Wednesday that Brazilian beef exports above the annual quota of 65,000 tons are already subject to a 26.4 percent tariff when imported into the United States.

His comments suggest Brazil, the world’s largest beef exporter, will remain a key supplier to the U.S. despite any protectionist rhetoric from the Trump administration.

Brazilian companies exported $1.3 billion worth of beef products to the U.S. last year.

“I think the U.S. is in a difficult position regarding its cattle cycle, and (it will be) at least for the next two years,” said Perosa, who heads the powerful beef lobby representing companies such as JBS and Marfrig, both of which operate in the United States.

Brazil exported about 230,000 tons of fresh and processed beef to the U.S. last year, up nearly 66 percent from 2023, much of it paid for by a high tariff, Perosa said, citing trade data.

The shortage of cattle in the U.S., where inventories are at their lowest level in seven decades, means U.S. buyers will need to find a reliable partner for large volumes of beef. “That partner is Brazil,” Perosa said.

Brazil has been trying to negotiate with the U.S. to increase the duty-free quota to 150,000 tons, but the status of the talks is unclear after Trump returned to the White House earlier this week, Perosa said.

The U.S. is Brazil’s second-largest beef export destination after China, and the South American country’s second-largest trading partner overall.

Brazil pays a 12% duty on beef exports to China, which bought $5.4 billion worth of beef from the South American country last year, Perosa said, citing trade data.

Tags: Brazil, Beef cattle, USA