Brazil counts losses on beef, sugar, and honey exports to U.S.

Brazilian meatpackers have suspended the production and processing of beef cuts specifically intended for the U.S. market following President Donald Trump’s decision to impose a 50% tariff on Brazilian products. According to Roberto Perosa, president of the Brazilian Association of Meat Exporting Industries (ABIEC), the tariff hike will force a renegotiation of export contracts and render shipments unfeasible this year.

Prior to the tariff announcement, Brazil had planned to double its beef sales to the U.S. in 2025, but those projections will now have to be revised. There is also uncertainty over the fate of containers already sitting in Brazilian ports or en route to the U.S. Most of these shipments are expected to be rerouted to China, Southeast Asia, and the Middle East.

“Brazilian processors have already decided to temporarily pause production intended for the U.S. market. The production flow for those specific cuts has been drastically reduced,” Mr. Perosa told foreign correspondents on Friday (11). He added that companies are “concerned” about what may come next.

In the sugar and ethanol industry, the 50% tariff on Brazilian products could cost mills over $100 million, according to estimates by consultancy Datagro. The projection is based on export volumes and reference prices for both commodities.

Last year, Brazil exported 309.7 million liters of ethanol to the U.S. at an average price of $0.587 per liter. A 50% duty would add $90.9 million in extra costs for Brazilian producers. For sugar, the additional burden is estimated at $27.9 million, taking into account the duty-free quota of 146,600 tonnes and an average price of $371 per tonne.