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China's Beef Tariffs Create Brazilian Transit Chaos
7 Jan
Summary
- Brazil uncertain if beef in transit counts toward China's new quotas.
- China imposed a 55% tariff on beef imports exceeding quota levels.
- Brazil's 2026 beef quota from China is set at 1.106 million tons.
Brazil's government is awaiting crucial clarification from Beijing on whether beef shipments in transit will be included in China's newly announced import quotas. This uncertainty impacts Brazil's significant beef exports, which saw approximately 53% go to China in 2025, generating $8.8 billion.
China has implemented an additional 55% tariff on beef imports exceeding established quota levels to safeguard its domestic industry. The potential inclusion of in-transit beef within these quotas could lead to substantial deductions, with some estimates suggesting up to 350,000 tons might be affected, impacting Brazil's 2026 allocation.
China has set Brazil's 2026 beef import quota at 1.106 million tons, with gradual increases planned for 2027 and 2028. The Brazilian beef sector is expressing significant worry over the interpretation of these rules, emphasizing the need for clarity on how existing shipments will be treated.
