SAO PAULO (Reuters) – On Saturday, the Chinese embassy in Brazil announced via social media that an additional 183 Brazilian coffee firms have received authorization to export to China.
This move, which became effective on July 30, provides a significant boost for local exporters, especially following the U.S. government’s recent declaration of heavy tariffs on Brazilian coffee and other goods.
The embassy’s post noted that these new export licenses for China will be valid for a five-year period.
This development comes as Brazilian coffee exporters and commodity traders face a major hurdle: a 50% tariff imposed by the United States on certain Brazilian products, set to start on August 6. This new levy forces them to seek new markets for the approximately 8 million bags of coffee typically sold to American processors annually.
While China stands as Brazil’s largest overall trading partner, the United States remains a key purchaser of other Brazilian commodities, such as beef and orange juice.
To illustrate the scale of the challenge, trade figures from the industry group Cecafe show that in June alone, Brazil exported 440,034 60-kilo bags of coffee to the U.S., a figure nearly eight times greater than the almost 56,000 bags sent to China during the same month.
The trade with the U.S. is substantial; Brazil provides roughly one-third of the nation’s annual coffee demand, representing a trade value of $4.4 billion over the last year ending in June.
Neither the Brazilian Ministry of Agriculture nor Cecafe offered an immediate comment on the matter. Reuters was unable to reach China’s customs authority for a statement as it was after business hours.
