Brazil Anticipates Agribusiness Gains Amid China-U.S. Trade Conflict
The Lula government of Brazil predicts benefits for agribusiness exports from the China-U.S. trade war, with Brazil likely substituting for U.S. products facing new tariffs. The country has established itself as a reliable supplier to China, which will impose additional tariffs on various agricultural goods in response to U.S. actions.
The government of Brazil anticipates potential benefits for its agribusiness exports arising from the ongoing trade tensions between China and the United States. Officials, who preferred to remain unnamed during a conversation with Folha, indicated that Brazil is positioned as a natural alternative for various U.S. products now subject to heightened tariffs imposed by China.
The outlook suggests a reminiscent scenario from Donald Trump’s initial presidential term, where Brazil profited from retaliatory tariffs levied by China and other trading partners against the U.S. Government analysis indicates that Brazil has established itself as a primary supplier to China, demonstrating reliability amidst geopolitical disruptions.
On October 10th, China is set to introduce a 15% tariff on chicken, wheat, corn, and cotton, while imposing a 10% tariff on multiple products, including sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables, and dairy. This tariff increase serves as a countermeasure to the U.S. decision to escalate tariffs on all Chinese imports to 20%.
In conclusion, Brazil’s agribusiness sector stands to gain from the recent trade conflict between China and the United States. With China imposing increased tariffs on specific U.S. imports, Brazil has the opportunity to emerge as a key supplier. This development echoes previous trade dynamics during the Trump administration and highlights Brazil’s strategic role in global agricultural supply chains.
Original Source: www1.folha.uol.com.br
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