Meatpackers rethink beef exports to US after Trump tariffs, industry lobby says

Rio de Janeiro/Sao Paulo | Reuters—Brazilian meatpackers are weighing whether or not to make new shipments of beef merchandise to the US after President Donald Trump introduced a 50 per cent tariff on Brazil final week, Roberto Perosa, president of Brazilian beef foyer ABIEC, mentioned.

The USA is Brazil’s second most vital beef products market after China, which is the South American nation’s primary importer of the commodity, in accordance with commerce information.

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Why it issues: The U.S. faces a good beef market because it just lately re-closed the border to Mexican cattle because of New World screwworm issues. Canadian beef producers may even see elevated U.S. demand consequently.

“New shipments are underneath evaluation by the personal sector because of the improve in tariffs,” Perosa mentioned on Tuesday.

The announcement of the tariffs affected Brazil’s cattle market final week and on Monday, with firms sharply lowering purchases of animals due to the uncertainty associated to the tariff announcement, mentioned Alcides Torres, a beef market guide with Scot Consultoria.

“The market turned chilly,” Torres mentioned.

Brazil accounts for some 23 per cent of U.S. beef imports, in accordance with calculations by Genial Investimentos.

Minerva, a listed beef packer in Brazil, derives round 5 per cent of its web income from beef gross sales to the U.S., the corporate mentioned after the U.S. introduced the imposition of the brand new tariff from August 1.

The corporate didn’t have an instantaneous touch upon the standing of its beef shipments to the U.S.

A latest scarcity of cattle within the U.S. elevated the nation’s demand for Brazilian beef imports, commerce information reveals. In keeping with analysts, the brand new tariff might make beef dearer for the U.S. shopper.