Brazilian Beef Exporters Divert Shipments Amid US Tariffs

The U.S. is set to impose a 50 percent tariff on imports from Brazil, which has South American exporters diverting beef supplies. 

Roughly 66 million pounds of beef already sitting at ports or en route to the U.S. have been diverted to other destinations such as Mexico, according to Valor International. Some shipments proceeded to the U.S. following the tariff announcement in order to mitigate losses from potential exclusions from the U.S. market. Some deliveries may still make it through U.S. ports tariff-free. 

Bloomberg reported that some meatpacking companies have halted beef processing destined for the U.S. 

Roberto Perosa, president of the Brazilian Beef Exporters Association (ABIEC), said the industry stands to lose $1 billion due to cancellations that could total 441 million pounds. Current tariffs could price Brazilian meat exporters out of the U.S. market. 

The U.S. imported a record 4.64 billion pounds of beef in 2024, according to data from the USDA’s Economic Research Service. Brazil was the third largest supplier, accounting for about 15 percent of shipments. For the first five months of 2025, Brazil has represented about 27 percent of imports. 

Tight cattle supplies have increased reliance on beef imports, largely from Australia, New Zealand, Canada, and Mexico. Strong supplies from Brazil have risen substantially to help meet U.S. consumer demand. 

Growth from Australia, Uruguay, and Argentina could help partially offset Brazilian supplies, though the absence of Brazilian beef could be felt on store shelves.

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