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PT_BR 
The United States' decision to impose an additional 50% tariff on Brazilian products is already having a tangible impact on the meat supply chain. In Mato Grosso do Sul, four meatpacking plants operating in foreign trade—JBS, Minerva Foods, Naturafrig, and Agroindustrial Iguatemi—have suspended production exclusively for the American market. Production for the domestic market and other destinations continues as normal.
Photos: Disclosure/OPR Archive
According to the State Cold Cuts, Meat, and Derivatives Industry Union (Sincadems), the strike is both preventative and strategic. The union's vice president, Alberto Sérgio Capucci, explains that shipments take about 30 days to reach the United States, meaning that shipments sent now would already arrive at their destination with the new tariff in effect, scheduled for August 1st. "Producing at this time poses a risk of commercial unfeasibility. Companies are adjusting to avoid losses on inventories that would otherwise have no viable financial outlet," he notes.
Capucci emphasizes that the measure doesn't compromise the entire operations of the industries, but it does require a readjustment of flows. "If there is no negotiation or reversal of this tariff, companies must redirect their efforts to markets with more favorable conditions," he states.
According to Jaime Verruck, Secretary of Environment, Economic Development, Science, Technology, and Innovation of Mato Grosso do Sul, the concern now turns to the accumulation of stocks and the reallocation of production. "There is a volume of meat already stored that should be exported to the American market, but it won't arrive in time for the tariff to go into effect on August 1st. As a result, meatpacking plants are adjusting their production scales and seeking alternatives to redirect these products," explains Verruck.
He also highlights that part of this meat could be destined for other markets with absorption potential, such as Chile and Egypt, which emerge as viable options to compensate for losses in the North American market.
Among the meatpacking plants mentioned, only Naturafrig has publicly commented. In a statement, it reported that approximately 5% of its production is destined for the United States and that the suspension affects only that volume.
Second main destination
The United States is currently the second-largest destination for Mato Grosso do Sul's beef exports, behind only China. In 2025, frozen boneless beef accounted for 45.21 TP4T of the state's exports to the North American market, generating revenue exceeding US$1.5T 142 million, according to data from the Federation of Industries of Mato Grosso do Sul (FIEMS). The previous year, this figure was 27.81 TP4T, generating approximately US$1.5T 78 million.
The strong presence of the American market in the state's foreign sales increases the pressure for a quick solution. Brazilian production sectors and authorities are evaluating diplomatic and trade measures to try to reverse or mitigate the effects of the tariff imposed by the Trump administration.
Meanwhile, industries are looking for alternatives to maintain production rates without compromising margins and
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stocks, while observing the developments in the political and commercial scenario between the two countries.
Significant reduction in production flow
The Brazilian Meat Exporters Association (Abiec) reported a significant reduction in production flows specifically destined for the North American market. In a statement, the association reported that Brazilian industries have already decided to temporarily pause activities related to the United States, given the uncertainty caused by the new tariff policy. "We received this news a few days ago, and the sector is trying to understand how to reschedule and redirect cargo and production," Abiec emphasized. "The rearrangement is being carried out with new partners that we seek to mediate around the world, with the potential for further market openings," it reports.
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Immediately, shipments will be redirected to countries with which Brazil already has established trade relations. China, Southeast Asia, and the Middle East are the main destinations currently targeted, according to the entity. Abiec reinforces that companies have already significantly reduced production destined for the United States, a move that reflects caution in the face of instability.
The sector is closely following developments and awaiting progress in diplomatic negotiations between the governments. Meanwhile, intense coordination with Brazilian importers and companies continues, aiming to influence a potential review of the US decision. "This has been our focus today," the association stated.
With the North American market on hold, repositioning Brazilian beef in international trade becomes a priority to avoid further losses and maintain the pace of exports in a competitive global scenario.
