China approves BRICS ally coffee lifeline
(MENAFN) China has approved nearly 200 Brazilian companies to export coffee to its market, offering crucial support to Brazil as it faces steep new U.S. tariffs. The announcement was made by the Chinese embassy in Brazil, shortly after Washington imposed a 50% tariff on Brazilian coffee and meat—two major pillars of the country's economy.
The tariffs, which took effect in late July, are part of former President Donald Trump’s broader trade war strategy. Brazil's Ministry of Industry and Foreign Trade warned that the measures could impact around 35.9% of the country’s exports to the U.S., potentially costing Brazil up to $14.5 billion annually.
The Chinese embassy stated that 183 Brazilian coffee producers have been granted permission to export to China starting July 30, with the agreement valid for five years.
In the 2024/2025 season, the U.S. was Brazil’s largest buyer of coffee, importing 7.468 million bags, valued at $1.9 billion. The U.S. also imported $1.35 billion in Brazilian meat products. However, rising tensions and the new tariffs threaten this trade relationship.
Meanwhile, China’s coffee consumption is booming. According to the International Coffee Organization, consumption rose 15% in the latest season, and the number of branded coffee shops in China jumped 58% over the past year, reaching nearly 50,000 outlets. This growth positions China as an increasingly important market for global coffee exporters.
Trump has defended the tariffs, claiming they respond to political attacks on former Brazilian President Jair Bolsonaro, despite the U.S. maintaining a $6.8 billion trade surplus with Brazil in 2024. He has repeatedly framed such trade policies as efforts to fix what he sees as unfair trade practices.
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