Tariffs fail to slow Brazil’s beef boom in US market
Despite 36.4% levy, strong demand drives surge
18 April 2025
2 minute read
By: Higher US tariffs will not hurt Brazil's sales to its second biggest beef export destination after China, Reuters reported, citing analysts and industry groups.
Brazilian beef imports exceeding a pre-determined quota pay a 26.4% tariff, but an additional 10% levy has been placed, raising the total to 36.4% after US President Donald Trump escalated his trade war.
For the US consumer, beef will cost more as importers bear the brunt of higher levies.
Joao Figueiredo, a beef analyst at agribusiness consultancy Datagro, said US demand is so strong that Brazil filled a 65,000-ton annual tariff-free quota in an unprecedented 14 days this year.
Even with higher tariffs, Brazilian beef remains competitive because US cattle prices are double relative to Brazil amid historically low inventories there, according to analysts.
Also, Brazilian cattle ranchers are in a position to increase supplies, Figueiredo said, highlighting ample availability in Mato Grosso state.
Fernando Iglesias, an analyst with Safras & Mercado, estimates Brazilian beef imports into the US this year will grow by almost 14% to 428,000 tons carcass weight equivalent, which refers to the slaughtered animal's cold body after being skinned, bled and eviscerated.
Australian beef also remains an attractive option for the US market after a 10% tariff announced this month. That country and Brazil, which already accounts for more than 30% of the global beef trade, are also poised to raise sales to China after Beijing did not renew the registration of hundreds of US meat facilities.
Total Brazilian beef sales to the US in the first quarter reached $557.15 million, up 67% by value, according to trade data compiled by Abrafrigo, another beef lobby.
Exports to the US represented 17% of total Brazilian foreign sales in the period while the average sale price to the US market rose to $3,384 per ton from $2,943, Abrafrigo data shows.
