Brazil faces 55% tariff on beef exports to China as quota nears limit

Brazil has reached about 80% of the beef export quota set by China for this year. Under a safeguard measure introduced in December, any country exceeding the quota will face a 55% tariff for three years, with Brazil liable if shipments surpass 1.1 million tonnes by 2026. The Brazilian government is negotiating with Chinese authorities, and President Luiz Inácio Lula discussed trade issues with President Xi Jinping during a recent phone call.

At the same time, China’s soybean imports remain heavily dominated by Brazil, accounting for almost 90% of the 13.55 million tonnes imported in June. The record flow underscores Brazil’s competitive edge over the United States, whose soy shipments to China are modest in comparison. Analysts cite lower production costs and price advantages as key reasons Brazil retains market leadership despite renewed U.S. purchases.