Trump announces 50% tariffs on Brazil clouding beef, agri-bulk shipments

US President Donald Trump announced on July 9 that 50% tariffs on all items shipped to the US from Brazil would be effective Aug. 1, putting the import of beef and agri-bulk shipments from the South American country at risk.

In a letter published on the social media platform Truth Social, Trump cited unfair trade and the trial of former Brazilian President Jair Bolsonaro in part as reasons for the new tariffs, adding that any transshipments will be subjected to even higher duties.

From January to May, the US imported a combined volume of 214,540 mt of beef from Brazil, an increase of 112.7% compared to the same period in 2024, according to the US Department of Agriculture's Global Agricultural Trade System.

US purchases of Brazilian beef in the first five months of 2025 nearly matched the total imports of 215,577 mt in 2024, according to GATS.

"Despite the existing tariffs, the new move by the US may further restrict the access of Brazilian meat to the American market, directly affecting shipments and competitiveness," a source from a Brazilian agri-consultancy said.

"The climate is uncertain, and it is important for the sector to prepare for scenarios of greater protectionism in international trade," a source said.

Similarly, for the January-May period, US imports of Brazilian pork stood at 13,074 mt, down 11.5% from the corresponding period in 2024, GATS data showed.

In 2024, Brazil exported a combined volume of 32,145 mt of pork to the US, according to GATS.

Since January 2024 until June, Brazil exported a net volume of 184,042 mt of corn to the US, according to S&P Global Commodities at Sea.

In the same period, US imports of Brazilian soybeans amounted to 130,337 mt, and another 88,020 mt of soybean meal, CAS data showed.

"If for any reason you decide to raise your tariffs, then, whatever number you choose to raise them by, will be added onto the 50% of that we charge," Trump said in the letter addressed to Brazilian President Luiz Inacio Lula da Silva.

"If you wish to open your heretofore closed Trading Markets to the United States, and eliminate your Tariff, and Non-Tariff Policies and Trade Barriers, we will, perhaps, consider an adjustment to this letter. These Tariffs may be modified, upward or downward, depending on our relationship with your Country," Trump added.

Price movements

Prices for US beef and soybeans have seen noticeable movements since Trump's announcement of reciprocal tariffs on April 2, the 90-day pause which went into effect April 9, and the trade deal with China on May 12.

Platts, part of S&P Global Commodity Insights, assessed 90CL beef CIF US at $6,680/mt on July 9, unchanged day over day.

The assessment dropped $22/mt from April 2 and $132/mt from April 9, but was $220/mt above the assessment on May 12.

Platts assessed the Brazil Beef Marker at $5,920/mt on July 8, unchanged day over day.

Similarly, Platts assessed soybeans FOB New Orleans for August shipment at $403.45/mt on July 9, down $4.50/mt day over day.

The assessment declined $2.75/mt from April 2, $2.30/mt higher from April 9, and $12.58/mt below the assessment on May 12.

Platts last assessed the SOYBEX FOB Santos soybean contract for August loading at $430.75/mt July 8, $2.66 lower than the previous assessment on July 7.