The Brazilian livestock chain could lose up to US$ 1.3 billion in exports to the United States if the tariff hike announced by Donald Trump’s government is confirmed. The estimate was released by the Instituto Pensar Agropecuária (IPA), linked to the Parliamentary Agricultural Front (FPA). According to IPA president Nilson Leitão, this impact refers to the sector’s entire product range — not just beef — that would stop entering the U.S. market due to the new 50% tariff the Republican government intends to impose on imports from Brazil. “It’s a loss of markets, income, and jobs. A decision like this, taken unilaterally, is extremely harmful and jeopardizes the entire country’s production chain,” he stated.
Leitão also pointed out that the measure could trigger a domino effect: “The United States serves as a reference for other markets, and this could also have a negative impact on other destinations for our exports,” he said.
The IPA hopes the Brazilian government will take political action to reverse or soften the tariff hike. “Brazil needs to be more assertive. It cannot simply accept decisions of this magnitude without reacting,” concluded the leader.
Currently, frozen boneless beef exported to the U.S. pays an out-of-quota tariff of US$ 1,780 per ton, which represents 36% of the average FOB price. With the additional 50% tariff, the amount would rise to US$ 3,750 in import taxes per ton, an increase of 111%. The final tariff would equal 76% of the cargo price, making trade unfeasible. Source: Globo Rural
