Tariff war challenges Brazil’s agribusiness logistics

China’s decision to counter the protectionist policies of the Trump administration with tariffs on U.S. agricultural goods is set to challenge Brazilian exporters, who face rising global demand for farm products but must contend with logistical bottlenecks.

According to the National Association of Grain Exporters (ANEC), this shift in trade flows could boost demand for Brazilian commodities, but infrastructure constraints may prevent the country from fully capitalizing on the opportunity. “While this scenario presents a market opening, Brazil’s internal logistics remain a key obstacle to efficiently moving production,” the association said in a bulletin.

In response to President Trump’s 20% tariffs on Chinese goods, Beijing imposed duties of 15% on U.S. corn, wheat, chicken, and cotton, and 10% on soybeans, sorghum, beef, and pork. The shift in demand toward Brazil is already having an impact. “This effect is still unfolding, but in the short term, export premiums have improved. In the first two months of the year, China reduced imports from the U.S. and increased purchases from Brazil, which now accounts for 79% of its imports during the period,” ANEC said.

The chart below reveals Brazil’s top ten most exported products in containers from Brazil to China in 2024, according to Datamar data.

Containerized Exports to China | Brazil | 2024 | TEUs

Source: DataLiner (click here to request a demo)

The association expects soybean exports to surge in March, coinciding with peak harvest season, reaching 14.79 million tonnes.

By Paulo Santos

Source: Valor International

Sharing is caring!