Tariffs on Brazilian beef will change global trade

Analysts told the agencyREUTERS reports that higher US tariffs on Brazilian beef are expected to redirect global trade flows. With President Donald Trump imposing a 50% tariff on Brazilian beef effective August 6, exporters expect increased US imports from Mexico, Australia, and possibly Argentina, while Brazil is redirecting more supplies to CHINA and other countries. (Brazilian beef , previously subject to a 26.4% US import duty above quota, is now subject to an additional 50% duty.)

Brazil's Ministry of Agriculture stated that beef exports to Mexico are helping to control local inflation, although it remains unclear whether Mexico will re-export beef to the United States. Abiec data shows that from August 1 to 25, Brazil shipped 10,200 tons of beef to Mexico, valued at $58.8 million, while the United States shipped 7,800 tons, valued at $43.6 million. Exports to RUSSIA and Chile also slightly exceeded the United States, totaling 7,900 tons each way.

EXPORT volumes to Mexico are growing rapidly. From January to July, Brazil exported 67,659 tons worth $365 million, nearly tripling the amount for the same period last year. By comparison, Brazil exported approximately 46,000 tons for all of 2024 and just over 5,000 tons in 2023. Abiec noted that Brazil is seeking to expand the number of MEAT processing plants authorized to supply the Mexican market. A Brazilian government delegation is visiting Mexico this week. Priorities include negotiations on a free trade agreement and the extension of the "Package to Combat Inflation and High Prices" (Pacic) for another two years.

Some analysts believe Brazil could enter markets traditionally supplied by Australia , while Japan could open up to Brazilian products as supplies from the US remain limited after the country's cattle herd reached historic lows.

China remains the main market for Brazilian beef.