By Jamie Martin
Effective August 6, the US has raised tariffs on many Brazilian imports to 50 percent, reshaping agricultural trade between the two countries. Although exemptions announced on July 31 covered products like orange juice, nuts, pulp, and fertilizers, key farm goods such as coffee, beef, tropical fruits, seafood, cocoa, and sugar cane remain affected.
Brazil’s farm exports, valued at US$164 billion in 2024, rely on markets in China, the EU, and the US. Coffee is a prime example—Brazil supplies about one-third of US coffee consumption. Tariffs may increase retail prices and inflation in the US, sparking industry appeals for exemptions.
The beef trade faces similar challenges. Brazil is the third-largest beef supplier to the US, and the American market is second only to China for Brazilian beef. Shipments rose sharply in 2024 but fell after earlier tariffs were applied, with a 62% drop from April to June 2025. The higher rate could cause over US$1 billion in losses this year.
Brazil is turning to China to offset losses, with 183 new coffee exporters recently approved for its market. Yet replacing US demand will be difficult due to regulatory standards and capacity constraints.
For the US, sourcing beef from alternative countries like Argentina and Australia may not be immediate or sufficient, likely raising costs for consumers. The dispute has now reached the World Trade Organization, signaling an ongoing shift in trade relations.
Without resolution, the tariffs could create lasting changes in supply chains, market access, and agricultural trade between the Americas.
Photo Credit: istock-fangxianuo
Categories: National