Brazil’s Beef Exports to the U.S. Soar by 498% Despite Trump’s Tariffs

In April 2025, Brazilian beef exports to the United States surged by an impressive 498% compared to the same period in 2024, jumping from 8,000 to approximately 48,000 tons. Roberto Perosa, president of the Brazilian Association of Meat Exporting Industries (Abiec), described this increase as “surprising”, even after the Trump administration imposed higher tariffs.

What’s Behind This Phenomenon?

The growth in Brazilian beef exports to the U.S. is linked to a combination of a scarce supply in the U.S. and high demand for beef. Perosa says the U.S. cattle herd has reached its lowest level in 80 years, impacted by factors such as severe droughts and producers shifting to more profitable ventures. Meanwhile, the demand for beef in the U.S. remains robust. “In the U.S., they eat hamburgers every day. It’s cultural,” notes Perosa, comparing it to Brazil’s staple foods like rice and beans.

This scarcity has driven up U.S. beef prices, with the price of live cattle ranging between US$115 and US$120, compared to US$54 to US$55 in Brazil, as explained by Fernando Henrique Iglesias, an analyst at Safras & Mercado. Despite the tariffs, Brazilian beef remains competitive. “U.S. beef is so expensive that even with a 36.4% tariff, Brazil is thriving in this market,” Iglesias states.

How Do Trump’s New Tariffs Work?

In April 2025, former President Donald Trump imposed a 10% tariff on beef imports, raising the total tariff to 36.4% on volumes exceeding the annual quota of 65,000 tons. Within the quota, the tariff increased from zero to 10%. Perosa points out that Brazil dominates this quota, which is typically filled by mid-January due to the limited capacity of other competing countries.

Despite the tariff hike, the impact on Brazilian exports has been minimal. “U.S. beef is so expensive that these tariffs aren’t deterring purchases,” Perosa explains. In the first four months of 2025, the U.S. imported 135,800 tons of Brazilian beef—almost five times more than in the same period in 2024, generating an additional USD 402 million.

Brazil vs. Australia: Who Leads the U.S. Market?

Although Brazil has made significant gains, Australia remains the largest beef supplier to the U.S., followed by Canada, Mexico, and Brazil in fourth place. The key difference lies in the type of product: while Australia supplies cuts ready for shelves, Brazil primarily serves the processed meat industry, such as hamburgers. “Australia operates in a different channel, but Brazil is gaining ground,” observes Perosa.

This complementarity reduces direct competition and strengthens Brazil’s position as a strategic partner. According to the National Supply Company (Conab), Brazilian beef production is projected to reach 10.2 million tons in 2025, making the country well-positioned to meet rising U.S. demand.

What Are the Challenges and Opportunities Ahead?

The increase in exports to the U.S. presents a significant opportunity for Brazil’s beef sector, which already exports to more than 150 countries. However, challenges remain. The sector’s dependence on markets like China (44.5% of Brazilian exports) and the U.S. exposes it to risks from political or economic changes. Additionally, potential regulatory changes, such as the proposed origin labeling championed by Robert F. Kennedy Jr., could affect American consumers’ preference for domestic beef, potentially impacting Brazilian exports.

On the other hand, Brazil’s competitiveness, driven by lower production costs and investments in quality and sustainability, should sustain growth. “We are ready to meet the demand for high-quality and safe food,” says Antônio Jorge Camardelli, president of Abiec.

What Does This Mean for Brazilians?

For Brazilian consumers, the export surge could raise concerns about domestic prices. In 2025, beef prices in the local market rose by 7% between November and December, according to Comex Stat. However, the record production expected this year should ensure domestic supply, as highlighted by Edegar Pretto, president of Conab: “With record production, we will have more beef on the market, which could reduce prices for consumers.” For ranchers and Brazil’s economy, the spike in exports underscores the importance of the beef sector, which generated USD 4.1 billion in the first four months of 2025—a record for the period.

Source: AF Noticias

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