MercoPress. South Atlantic News Agency

Brazil to look elsewhere in light of Trump's tariffs

Fávaro said alternatives were being sought for profuts that would become unaffordable to US consumers

Brazil's Ministry of Agriculture and Livestock (Mapa) has been entrusted with seeking new markets to replace placements that may be affected by US President Donald Trump's 50% tariffs, in a move to minimize the measure's impact, Minister Carlos Fávaro confirmed Thursday.

“I will reinforce these actions, seeking the most important markets in the Middle East, South Asia, and the Global South, which have great consumer potential and may be an alternative for Brazilian exports. Brazil's diplomatic actions are being taken in reciprocity. Proactive actions will take place here at the Ministry of Agriculture and Livestock to minimize the impacts,” said Fávaro in a statement on social media.

In a letter to President Luiz Inácio Lula da Silva on Wednesday, Trump announced that the sanctions would take effect on Aug. 1.

Fávaro classified the US government's action as “indecent” and said that the Brazilian government was acting proactively. He reported that he has already spoken with the main representative entities of the most affected sectors, such as orange juice, beef, and coffee, to find alternatives.

“So that we can, together, expand the actions we have already been carrying out in the two and a half years of President Lula's government to expand markets, reduce trade barriers, and provide growth opportunities for Brazilian agriculture.”

In the agribusiness sector, sugar, coffee, orange juice, and beef are the main items on Brazil's trade agenda with the United States. According to experts interviewed by Agência Brasil, one of the short-term side effects is likely to be a drop in domestic prices, especially for agricultural commodities that will no longer be exported.

The Brazilian Beef Exporters Association (Abiec) already estimates that Trump's measure will make the cost of Brazilian beef so high that it will make it unfeasible to sell the product to the United States. (Source: Agencia Brasil)