SAO PAULO, Jan 22 (Reuters) - Brazilian beef companies
do not expect to be hurt by potential new tariffs from President
Donald Trump's administration because of low inventories of
cattle in the U.S. and a sizable tariff that already exists on
these exports.
Roberto Perosa, head of the Brazilian beef exporters association
ABIEC, said in an interview on Wednesday that Brazilian beef
exports outside a 65,000-ton annual quota already are slapped
with a 26.4% tariff when entering the U.S.
His remarks suggest Brazil, the world's largest beef
exporter, will remain a key U.S. supplier despite any
protectionist rhetoric from the Trump administration.
Brazilian companies exported $1.3 billion worth of beef
products to the U.S. last year.
"I think the U.S. is in a difficult moment relative to its
livestock cycle, and (will remain so) at least for the next two
years," said Perosa, who leads the powerful beef lobby that
represents firms like JBS and Marfrig,
both of which have U.S. operations.
Brazil exported some 230,000 tons of fresh and processed beef to
the U.S. last year, up almost 66% from 2023, with most of it
paying the hefty tariff, Perosa said, citing trade data.
Scarcity of cattle in the U.S., where inventories have hit the
lowest level in seven decades, means U.S. buyers will need to
secure a reliable partner for large beef volumes. "That partner
is Brazil," Perosa said.
Brazil has tried to negotiate an increase of the tariff-free
quota to 150,000 tons with the U.S., but the state of the talks
is unclear following Trump's return to the White House earlier
this week, Perosa said.
The U.S. is Brazil's second-largest export destination for beef
after China, and is also the South American country's
second-largest trade partner overall.
Brazil pays a 12% tariff to export beef to China, which took in
$5.4 billion worth of the South American country's beef last
year, Perosa said, citing trade data.