Brazilian meat exporters urge sector-specific talks with U.S. to reverse beef tariffs

The president of the Brazilian Association of Meat Exporting Industries (Abiec), Roberto Perosa, said he still believes in a “negotiated solution” with the United States to circumvent the tariff hike and resume beef exports to the country. However, he criticized the Brazilian government’s approach in negotiations with the Americans. According to him, the Executive Branch will not succeed if it insists on “bloc negotiations” to try to reverse the 50% tariffs on Brazilian products; instead, each affected sector must be addressed individually in talks with Washington.

“We commend the initiative of the Brazilian government, but so far it has not been successful,” Perosa said on Monday (August 11) during a session at the São Paulo State Assembly. “We are asking the government to continue and intensify negotiations, perhaps by engaging in sector-based talks until the full scope is reached, starting with sectors that the U.S. currently sees as more essential, so there’s no bloc negotiation, but rather sector-specific discussions that can more easily achieve results,” he added.

Perosa, who served as Secretary of Trade and International Relations at the Ministry of Agriculture for two years, said it is “very difficult” to negotiate in a bloc with the U.S. “I believe in a negotiated solution; there is no other way for us,” he said. “I was at the forefront of negotiations with the U.S. for two years. I am well aware of what they want and what Brazil can offer, but the situation has changed because political factors have entered the negotiations, not just commercial ones. We hope that political matters are directed to political agents and not to the productive sector,” he added.

Perosa said he is maintaining contact with U.S. importers and Brazilian companies with operations in the U.S., such as JBS and Marfrig, to try to reach the White House and Congress and demonstrate the benefits of Brazilian beef to the American economy.

“Beef prices in the U.S. keep rising. It’s already causing some chaos and pressure from American companies on their government. Fast food chains have been speaking with [President Donald] Trump about the situation,” he noted.

“We have been speaking with importers and Brazilian companies that operate directly in the U.S. to engage with the American government and Congress, explaining the benefits of Brazilian beef in their market. Beef is part of the blend, part of inflation control, and ensures that the lower-middle class has access to beef — an essential protein for human subsistence that’s culturally significant in the U.S.,” Perosa stated.

He emphasized that Brazil exports to nearly 160 markets, but cannot reallocate all of the beef currently shipped to the U.S. The cuts exported there — lean front cuts — are not widely consumed in Brazil, and absorbing them domestically could drive down retail prices and reduce the value of cattle for ranchers.

“Our livestock industry is highly dispersed, and we can’t easily find new destinations like the U.S., which was our second-largest market, with high demand and profitability given their meat shortages,” he said during the hearing.

According to Perosa, the volume demanded by the U.S. market “isn’t something you find just anywhere.” He added that Brazil will have to learn to deal with “Trumpulence” — his term for turbulent times under President Trump.

“Brazil exports the front cuts of the animal, which have low domestic consumption potential. We can absorb some of what would have gone to the U.S., but not all of it. Brazilians aren’t accustomed to eating ground beef on a daily basis. There’s no way to absorb it all or find other markets that require that level of demand,” he explained. “This affects livestock; it affects cattle prices. Prices dropped after the tariff announcement but recovered due to strong demand from China. Still, the outlook isn’t secure if we don’t regain the U.S. market,” he warned.

The U.S. accounts for 12% of all Brazilian beef exports. “We don’t have anywhere else to send it. We’ll have to absorb it domestically with depreciated prices, which is very negative,” he concluded.

In July, Brazil set a monthly record for beef exports, with over 313,000 tonnes shipped. According to Perosa, part of that involved moving shipments to the front of the line ahead of the tariffs.

“We are on a growth trajectory of 13% to 14% in volume compared to 2024, a year in which we broke all records. The forecast of a shortfall in slaughter-ready cattle did not materialize. We are still growing steadily in exports,” he said.

Source: Globo Rural

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