With Donald Trump’s partial retreat and the exclusion of part of the Brazilian tariff exporting agenda, the government now concentrates the focus of negotiations in an attempt to broaden the list of exceptions. The main focus at this time is coffee.
Negotiators heard by CNN They evaluate that it indicates that there is still room for negotiation within the American commercial logic.
Following this reading, coffee is considered by the government the product with the greatest potential to obtain a different treatment. , with cultivation restricted to Hawaii, California and Puerto Rico.
For the government, it is unlikely that the product will be fully exempt, but it is expected that the applied rate is below 50% – between 20% and 30%.
The US Secretary of Commerce,
Data from CNA (National Confederation of Agriculture) show that, even with the highest fare, Brazilian coffee would follow competitive in the US market.
The beef, on the other hand, although it is also at the center of negotiations for the next steps.
Parallel to dialogue with the US, the Brazilian government also maps alternative markets to mitigate the impacts of the tariff.
Brazil’s intention is not to fully replace the US market, something considered impossible due to the complexity of the productive chains and the size of the US consumer market,
In the case of coffee, the authorities point to China and India as strategic destinations. Although coffee consumption is not yet traditional in these countries, both have strong demand growth and are large potential consumer markets.
For beef, the government sees Saudi Arabia as a possible destination.
By 2024, the country imported about US $ 487 million in frozen boneless beef, a growing market since 2020. The largest suppliers are India (US $ 197 million), Brazil (US $ 149 million) and Australia ($ 73 million).
Brazil stands out in Saudi Arabia for having 140 establishments qualified by the Local Health Authority (SFDA), the largest number among exporters.
The Brazilian government estimates an additional export potential for Saudi Arabia of about $ 54 million per year.
Vietnam and Singapore are also seen as promising markets for Brazilian beef.
