Home / Business and Economy / China Approves 183 New Brazilian Coffee Exporters Amid U.S. Tariffs
China Approves 183 New Brazilian Coffee Exporters Amid U.S. Tariffs
3 Aug
Summary
- China approves 183 new Brazilian coffee companies to export to Chinese market
- New Chinese export permits valid for 5 years, effective July 30
- U.S. to impose 50% tariff on some Brazilian products starting August 6
In a move that could help offset the impact of upcoming U.S. tariffs, China has approved 183 new Brazilian coffee companies to export their products to the Chinese market. The new export permits, which took effect on July 30, are valid for 5 years and represent a significant opportunity for Brazilian coffee exporters.
The development comes as the U.S. government has announced a 50% tariff on some Brazilian products, set to begin on August 6. This levy poses a challenge for commodities traders and Brazilian coffee exporters, who will need to find alternatives for the roughly 8 million bags of coffee sold to U.S. processors each year.
China, Brazil's top trade partner, has emerged as a potential new market for Brazilian coffee. In June, Brazil's coffee exports to the U.S. totaled 440,034 60-kilo bags, while sales to China were nearly 56,000 bags. The new Chinese approvals could help narrow this gap and provide a lifeline for Brazilian coffee producers facing the prospect of losing a significant portion of their U.S. market.
