In São Paulo on January 22, Brazilian beef companies anticipate no negative impact from potential new measures by the current U.S. administration due to low cattle inventories there and existing significant tariffs on exports.
Roberto Perosa, the head of the Brazilian beef exporters association ABIEC, stated in an interview on Wednesday that Brazilian beef exports exceeding a 65,000-ton yearly quota face a 26.4% tariff upon entering the U.S.
His comments imply that Brazil, the world's largest beef exporter, will remain a crucial supplier to the U.S. regardless of any protectionist rhetoric from the Trump administration.
Brazilian companies shipped $1.3 billion worth of beef products to the U.S. last year. Perosa noted, I believe the U.S. is facing challenges in its livestock sector, and this trend will likely continue for the next two years, leading the powerful beef lobby that represents companies like JBS and Marfrig, both with operations in the U.S.
Brazil exported nearly 230,000 tons of fresh and processed beef to the U.S. in the past year, a nearly 66% increase from 2023, with most subject to the substantial tariff, according to Perosa citing trade data.
The scarcity of cattle in the U.S., with inventories at record lows, will necessitate American buyers to secure a trusted supplier for significant beef quantities. "That supplier is Brazil," stated Perosa.
Brazil has pursued discussions to raise the tariff-free quota to 150,000 tons with the U.S., but the status of these negotiations remains uncertain following Trump's recent return to the White House, Perosa remarked.
The U.S. ranks as Brazil's second-largest beef export market after China and is also the South American nation's second-largest trading partner overall.
Regarding exports to China, Brazil faces a 12% tariff, with China having imported $5.4 billion worth of Brazilian beef last year, Perosa noted, referencing trade data.