Overview
- China’s embassy in Brazil announced on July 30 that 183 Brazilian coffee exporters received five-year permits to ship beans to the Chinese market.
- The U.S. government’s 50% tariff on Brazilian coffee takes effect on August 6, endangering a market that accounts for about one-third of U.S. consumption and is valued at $4.4 billion.
- Brazil historically ships roughly 8 million 60-kg bags of coffee annually to U.S. processors compared to fewer than 60,000 bags to China, according to Cecafe data for June.
- President Lula is pressing to diversify export partners and has tasked Finance Minister Fernando Haddad with discussing the tariffs with U.S. Treasury Secretary Scott Bessent.
- Exporters are already rerouting shipments toward Chinese buyers to offset anticipated losses from the U.S. trade barriers.