China Fast-Tracks Brazilian Coffee Imports Amid US Tariffs
Beijing has fast-tracked authorization for nearly 200 Brazilian firms to export coffee to the Chinese market, a significant move in the wake of the U.S. imposing steep tariffs on South American products. The decision comes after Washington imposed a 50% tariff on Brazilian coffee and meat, which threatens to cause annual losses of up to $14.5 billion for Brazil. This move is part of a broader trade war launched by former U.S. President Donald Trump against multiple countries.
The Chinese embassy in Brazil announced that 183 new Brazilian coffee companies have been approved for export to the Chinese market, a decision that took effect on July 30 and will remain valid for five years. This is a strategic move by Beijing to mitigate the impact of the tariffs and to meet the growing demand for coffee in China. According to the International Coffee Organization, coffee consumption in China grew by 15% in the latest season, while the number of branded coffee shops in the country surged by 58% over the past 12 months, reaching 49,691 outlets.
Brazil’s Ministry of Industry and Foreign Trade has estimated that 35.9% of exports to the U.S. will be affected by the tariffs, warning of potential annual losses that could reach up to $14.5 billion. During the 2024/2025 crop year, Brazil exported 7.468 million bags of coffee to the U.S., making it the largest destination for Brazilian coffee exports. The U.S. accounted for 16.4% of Brazil’s total coffee exports, which amounted to $1.9 billion in coffee exports along with $1.35 billion in meat exports.
Trump has defended the steep tariffs on Brazilian goods, citing what he called a ‘witch hunt’ against former President Jair Bolsonaro, despite the fact that the U.S. ran a $6.8 billion trade surplus with Brazil in 2024. Trump had previously justified his trade policies by claiming he intended to correct trade imbalances.
The situation highlights the geopolitical tensions and economic shifts in the region, with China emerging as a key player in the global coffee market. The move by Beijing to support Brazilian coffee exports underscores its growing influence in international trade and its strategic approach to economic relations with other countries.