China adds 55% tariff to Brazil beef as imports hit quota

China will start collecting an additional 55% tariff on Brazil’s beef shipments ​on October 1 after the South American country reached its annual ‌quota of 1.1 million metric tons, the commerce ministry said on Wednesday (30).

• China unveiled the added tariff, applicable to all suppliers, in January to protect ​its domestic cattle industry.
• The duty adds to the standard ​import tariff of 12%, taking to 67% Brazil’s total ⁠import duty on all shipments surpassing its quota.
• Brazil, the world’s ​biggest beef exporter, hit its annual quota of 1.1 million tons ​for shipments to China as of Wednesday, China’s commerce ministry said.
• Uruguay had authorised Brazil to use the surplus from its beef export quota to China, ​Brazilian President Luiz Inacio Lula da Silva said last week.
• But ​industry insiders say China has not agreed to allow Brazil to use Uruguay’s ‌quota ⁠this year or the next.
• Even if Brazil directly reached agreement with other countries over unused beef volumes, China was unlikely to agree, the industry sources told Reuters.
• In May, Reuters reported Beijing had ​rejected Brazil’s repeated lobbying ​attempts to allow ⁠such use.
• All eyes are on whether China, ​the largest buyer of Brazilian beef, will renew ​its ⁠beef quota system for 2027 by year-end.
• Brazil’s total beef export volumes are expected to drop 10% in 2026 on the year, industry group ⁠Abiec has ​estimated, amid curbs by Beijing and ​a similar recent move by the European Union.

Source: Reuters

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