Brazil seeks new markets for agribusiness after Trump's tariff
The protectionist escalation of U.S. President Donald Trump has triggered a wave of concern in the Brazilian agribusiness sector. The 50% tax on Brazilian products announced by the White House — set to take effect on August 1st — is expected to lead national exporters to redirect their sales to other markets. The news was reported by the G1 portal this Wednesday (16).
According to the Ministry of Development, Industry, Commerce and Services, the U.S. is the second largest destination for Brazil's exports, behind only China. With the new tariff barrier, products such as beef, coffee, orange juice, ethanol, and sugar may lose competitiveness in the North American market, necessitating an urgent reconfiguration of Brazilian export strategy.
Coffee: China, India, and Australia may increase purchases
Coffee, one of Brazil's main exported commodities, may see its trade route redesigned. The United States currently buys 16% of all coffee exported by the country, being the largest customer of Brazilian coffee in the world.
According to the General Director of the Coffee Exporters Council of Brazil (Cecafé), Marcos Matos, there is potential for growth in Asian markets and Oceania. “China imported 1.2 million bags of coffee from Brazil but consumes 6.3 million. So, there is room in important markets,” he explained.
For analyst Fernando Maximiliano from the StoneX Brazil consultancy, the tariff could profoundly alter global flows in the sector. With the U.S. seeking new suppliers such as Honduras, Guatemala, and Colombia, the possibility arises for Brazil to expand its presence in the European Union, which is currently supplied by these countries. “I would bet, in the short and medium term, on the change of flows between the markets that are already partners in this coffee world,” he stated.
Source: Brasil247