Paraguay Prepares Strategies to Address Potential Trump Meat Tariffs

Paraguay's MEAT sector faces uncertainty over possible protectionist measures that the Trump administration could impose in the United States. The Ministry of Economy and Finance is already analyzing alternative options to mitigate the impact of potential tariff restrictions on the country's main EXPORT product.

Carlos Fernandez Valdovinos, HEAD of the economic department, acknowledged that the United States could impose new duties on Paraguayan beef , which would significantly affect the competitiveness of the product in this market. “So far, they have not imposed any additional taxes on us. We will get what we want, namely a quality mark that will allow us to enter. This is what is important for Paraguayan beef. We will not be able to sell if they impose duties on us, because the tax will most likely make us uncompetitive,” the minister said.

This scenario is unfolding at a crucial moment for the Paraguayan meat export sector, which only managed to complete its first shipment to the United States in January 2024 after years of negotiations and an exhaustive HEALTH screening process. The approval to export beef to the US market was a historic milestone for the country's position in the premium segment.

The Santiago Peña administration is already exploring alternative markets in light of potential tariff barriers. Valdovinos noted that “there are still more than 100 countries where we have the opportunity to sell our meat,” highlighting opportunities in Brazil with greater integration into its production chain and the development of markets such as Colombia and Peru. Countries in the Middle East also appear promising, with Saudi Arabia and the United Arab Emirates in particular on the RADAR of the authorities.

The Paraguayan Meat Chamber confirmed to local media that it would step up efforts to open other markets if the Trump administration's restrictions were implemented. The union stressed that Paraguay has already seen a significant increase in its exports, taking advantage of the reduction in supplies from Brazil due to health restrictions in that country.

According to the latest report from the National Animal Health and Quality Service (Senacsa), the United States has quickly become the top buyer for Paraguay, displacing Israel from third place in just a few months. This progress has been crucial for the sector, which exported a total of 34,258 tons of meat in February, generating revenues of US$191 million, up 29% in value and 30% in volume compared to January.

Another achievement was the first shipment of frozen kosher meat from Paraguay to the United States on February 5, amounting to 24,000 kilograms. This diversification into specialized segments demonstrates the potential of Paraguayan products to access higher-value niches, a strategy that could be strengthened given potential limitations in the traditional market.

The producer sector expects to maintain in 2025 the export volumes achieved in 2024, when the initial target of 10,000 tons agreed with Washington was significantly exceeded. However, the political environment in the United States and the protectionist signals sent by the new administration are forcing the Paraguayan government and the private sector to diversify risks and pursue a broader trade strategy that will support the growth of this key sector of the national economy.