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Brazil's beef companies breathing easy over prospect of new Trump tariffs
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Brazil's beef companies breathing easy over prospect of new Trump tariffs
Jan 22, 2025 1:16 PM

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.

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