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Livestock sector fears impact of US 50% tariff on Brazilian exports

Agents in the Brazilian beef cattle sector are apprehensive about the announcement of a 50% tariff on Brazilian exports to the United States. According to Cepea researchers, the impact of this news has been compounded by the weak pace of domestic meat sales.

The result has been a sharp slowdown in the slaughter animal business and weakening prices for both slaughter animals and meat. The United States is the second-largest buyer of Brazilian beef, accounting for 12% of exports, behind only China, which accounts for 49%.

Data from Secex show that, in June/25, the volume purchased by the North Americans was already the lowest since December/24. Even so, total exports of Brazilian beef in that month had the second best performance of the year (totaling almost 270 thousand tons).

Cepea researchers indicate that much of the compensation in June came from increased shipments, particularly to China, which has been increasing its purchases monthly since February.

Cepea researchers point out that, in March and April, US companies purchased record volumes of beef, over 40,000 tons each month, in a possible stockpiling move amid fears that the US president would increase tariffs on international trade.

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