Escalating trade tensions may benefit Brazil in meat exports

Brazil may benefit from the current US policy of imposing tariffs on its main trading partners. It is important to highlight that the United States is a significant exporter of commodities and competes with Brazil in several key products, such as meat. Possible retaliation by meat importers may boost Brazilian sales in a preliminary analysis.
The tariffs imposed by the United States on Brazil (10%) affect beef sales, which now have an export tariff of around 36%. Given the need to purchase, US importers will likely keep buying large volumes of beef from Brazil.
Chinese retaliation and possible announcements from Europe, Canada, Mexico, and the rest of Asia may shift animal proteins to the Brazilian market, meaning that Brazilian sales may expand in the face of retaliation. The global outlook is favorable for Brazilian commodity exports.
The current dynamics established in bilateral negotiations around the world imply protectionism. However, demand for food is growing steadily, especially in Asia, making imports essential to maintaining food security for populations around the world. Inflation risk is growing, and an economic recession could severely affect the world’s top economy.
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