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US Measure Imposing 50% Tariff on Brazilian Products Pressures Agriculture, Already Affecting Internal Prices with Falling Meat, Coffee, and Orange Prices — Government Seeks New Buyers to Try to Reduce Impact.
The Brazilian agribusiness has entered the radar of Donald Trump — and not in a good way. The President of the United States announced a new tariff package against Brazilian products, directly impacting three pillars of our trade balance: beef, coffee, and orange juice.
The measure generated an immediate reaction in the market and is already beginning to impact prices in Brazil. With the exportation to the US becoming more expensive and less attractive, the surplus of these products starts to pressure the internal market, driving down prices.
Trump’s Tariff Hits Brazilian Exports Hard
The additional tariff imposed by the US complicates the entry of Brazilian products into the world’s largest consumer market. This means that exporting beef, coffee, and orange juice has become more expensive and less competitive for Brazil, favoring countries that do not face this barrier.
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The Batista brothers, owners of JBS, have an estimated fortune of R$ 30.5 billion each, control more than 50 brands ranging from Friboi and Seara to PicPay, Neutrox, and Minuano, operate in more than 180 countries, and caused operations at the port of Itajaí to skyrocket by 330% in less than two years.
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Chapada dos Veadeiros is home to more than 200 springs that feed the São Francisco, Paraná, and Paraguay rivers, and now the government of Goiás is discussing loosening environmental rules to allow rare earth mining after a 15-year agreement signed with the United States.
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The government launched this Monday (05/11) Tesouro Reserva, a public bond with profitability of 100% of the Selic, a minimum investment of R$ 1, and immediate redemption, aimed at emergency reserves. For now, it is only possible to invest through Banco do Brasil.
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Honda has its first loss in history, and the reason is revealed after an estimated shortfall of 400 billion yen and an impact that could reach 2.5 trillion, putting the Japanese giant in one of its biggest financial crises in almost 70 years.
In practice, this reduces the volume sold abroad and increases the supply here — a movement that directly influences the prices paid to producers and, possibly, to consumers.
Prices Falling: What Has Changed?
According to industry analysts, beef prices have started to decline, especially in the wholesale market. The same is true for Arabica coffee, which had already been fluctuating due to climatic factors, and now suffers another blow from international pressure.
The orange juice, another item heavily exported to the United States, is also among the most affected. Brazil is the world leader in the segment, and any slowdown in exports creates a surplus that drives down domestic prices, affecting citrus producers, especially in the state of São Paulo.
During this month, the price of the fat cattle in dollars recorded a decrease of 8.05%. Meanwhile, the box of oranges saw a devaluation of 5% in the same period. Coffee prices fell by 4% to 11%.
Brazil Acts and Seeks New Destinations for Orange Juice After US Tariff
In light of the impact caused by the new tariffs imposed by the United States on Brazilian orange juice, the federal government has begun negotiating commercial alternatives to mitigate losses. Among the main focuses of these discussions are China and Saudi Arabia, two markets with significant consumption potential and strategic interest.
According to authorities from the Ministry of Agriculture, technical teams have already initiated diplomatic and sanitary talks with both countries. The goal is to expedite the process for Brazilian companies to export directly to these destinations, increasing the international presence of the beverage.
With this, Brazil aims to reduce its historical dependence on the American market, which has been one of the main buyers of national concentrated juice for decades. The strategy is seen as essential to alleviate pressure on domestic stocks and maintain the sector’s profitability.
Although still in the negotiation phase, the opening of these markets could represent a new route for Brazilian citrus farming, especially at a time when producers are facing challenges such as falling prices, high production costs, and instability in traditional exports.
Have you noticed any difference in the prices of these products?
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