By Ana Mano
SAO PAULO (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.
(Reporting by Ana Mano; Editing by Paul Simao)
