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Chicken, Coffee, and Meats Register Declines in the Domestic Market After American Tariff, While Seafood Differs and Rises 2% in the Same Period.
Brazilian products affected by the 50% tariff imposed by the United States are already showing price declines within the country.
The survey by Scanntech indicates reductions in important food items, but experts remind that this price drop may be temporary. The analysis is by Victor Irajá for the Bastidores CNN.
Chicken had the largest reduction, with a drop of 5.7% between July and August.
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Next is coffee, with a decrease of 4.6%. Pork and beef also recorded decreases of 1.3% and 0.8%, respectively.
In contrast, seafood was the exception and rose 2% in the same period.
Industry Less Confident
While food prices are declining, CNI alerts to the worsening confidence in the industrial sector.
The industrial entrepreneur confidence index fell from 50.2 points in June to 45.6 in August. Since the scale considers below 50 a signal of lack of confidence, the decline is noteworthy.
According to Marcelo Azevedo, economic analysis manager at CNI, exporting companies face a complicated scenario.
Previously, selling to foreign markets helped to offset weak domestic demand. Now, high interest rates and new American tariffs further reduce the possibilities for recovery.
Factors That Explain the Declines
Price variations reflect the domestic market’s capacity to absorb products.
This is because macroeconomic factors and the search for other export destinations weigh on the formation of values.
In addition, the possibility of stockpiling goods also directly influences price behavior.
Therefore, the price drop seen in chicken, coffee, and meats may be linked to this market adaptation.
Still, experts remind that external changes, such as tariffs and interest rates, can quickly alter this dynamic.
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