Donald Trump’s new global tariff system may be great for Brazil, as it turned out. This is the reason.
China, which struck Trump, imposed a new tariff of 145 % last month, its revenge measures. Beijing targets its rifles on American farmers, who make up an important segment of Trump’s voters.
It dates back to last year, when China was one of the three largest destinations for American agricultural products. According to the Ministry of Agriculture, these exports were about $ 25 billion in 2024. It is unlikely to reach this issue this year.
In March, President Xi Jinping announced 15 % additional definitions on chickens, wheat, corn, cotton and cotton by 10 % on the delicate atom, soybeans, pork, beef, seafood, fruits, vegetables and dairy products. When Trump raised the tape, China followed a tariff of 125 % on US soybeans.
Chinese consumers will not starve. Brazilian farmers can easily replace American products with soy and corn beans. They also have chicken and eggs. Fortunately for them, the Brazilian chicken farms fled the outbreak of influenza, and the Brazilian farmers ready to charge birds to Asia.
Japan can be another new outlet. Japan imported 40 % of the United States from the United States last year, but the new US definitions of car imports have offended Tokyo. Why don’t you try Brazilian meat? This is what President Luiz Inacio Lula da Silva proposed on a modern trip to Japan. The message is the same in Europe. In December, the European Union signed a deal with Mercosur that eliminated 90 % of the definitions between Europe and the South American Group of Argentina, Bolivia, Paraguay, Uruguay and Brazil. The agreement is awaiting ratification by the European Union countries; Brazilian Finance Minister Fernando Haddad visited the European Union at the end of March to emphasize the benefits of the deal.
Ironically, Trump’s new world order can also support the increase in Brazilian shoes exports to the United States. Americans, deprived of cheap Chinese shoes, can turn into Brazilian models. Thanks to its abundant supply of leather, Brazil is the largest producer of shoes outside Asia.
