Quick summary:
The US imposes a 50% tax on Brazilian goods, effective from August 7.
China quickly expanded its imports of Brazilian coffee, granting licenses to 183 companies.
Coffee is Brazil's main export to the US – accounting for more than 30% of US imports in 2024.
US tax reasons linked to former President Bolsonaro's trial.
China affirmed its willingness to strengthen cooperation with Brazil in many fields.
Brazilian Coffee: From Losses in the US to Opportunities in China
On Wednesday, the Chinese embassy in Brazil shared a video on the X platform (formerly Twitter), with the message: “Chinese businesses are coming to Brazil,” with a prominent image of food delivery company Meituan.
The post also said: “Brazil is strengthening its presence in China with its beloved coffee.”
Days earlier, China had announced approval for 183 Brazilian coffee companies to export to the Chinese market for a period of five years. Another message from the embassy emphasized that coffee was becoming a part of daily life in China.
America is the number one customer of Brazilian coffee.
The United States is currently the world's largest coffee importer, with Brazil being the number one supplier, accounting for 30.7% of the 1.5 million tons of coffee the United States will import in 2024.
But with new import tariffs of up to 50%, the Brazilian coffee industry risks losing a key market, paving the way for China to become a strategic alternative partner.
The Trump administration has made no secret of the political reasons behind its tariffs. In an executive order signed last week, the White House accused Brazil of human rights violations by prosecuting former President Jair Bolsonaro, who is facing charges of plotting a coup.
Mr Bolsonaro, a close ally of Trump, has denied all charges. Shortly afterwards, Mr Trump sent a letter asking Brazil to "immediately stop the trial", claiming that President Lula was conducting a political "witch hunt".
President Lula responded: “The Brazilian judiciary is independent. The president has no influence over the judicial system,” and insisted that Bolsonaro was being tried for his actions related to the coup, not for him personally.
Brazil Prepares to Respond, China Calls for Deeper Cooperation
The Brazilian government said it would retaliate against the US tariffs, but did not provide details. “Brazil must be treated equally in all trade negotiations with the US,” President Lula said.
He also stressed that talks with the Trump administration cannot go on indefinitely.
Meanwhile, Chinese Foreign Ministry spokesman Guo Jiakun said at a press conference: “Cooperation between Beijing and Brasilia has brought benefits to both countries,” and pledged that China will deepen its strategic relationship with Brazil.
China's latest move shows that it is not only aiming for commercial benefits, but also taking advantage of the opportunity to strengthen its geopolitical position in South America, a region that has long been under US influence.
For the Brazilian coffee industry, the shift from the US market to China may open new doors, but it also entails dependence and reorientation of production.
Source: https://baonghean.vn/thi-truong-ca-phe-trung-quoc-huong-loi-tu-cang-thang-thuong-mai-my-brazil-10304052.html
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