China embraces 183 Brazilian coffee sellers following the implementation of US tariffs

The Chinese embassy in Brazil announced on social media on Saturday that it has authorized 183 new Brazilian coffee enterprises to export their goods to the Chinese market.

The policy went into effect on July 30 and was a relief to local exporters following the declaration by the U.S. government of high duties on Brazilian coffee and other goods.

The post states that the new Chinese export permits are good for five years.

On August 6, certain Brazilian goods will be subject to a 50% tax imposed by the United States.

Brazilian coffee exporters and commodities traders have a hurdle as a result of the levy: they must find substitutes for the approximately 8 million bags of coffee that are sold annually to coffee processors in the United States.

The United States is a major consumer of Brazilian goods, including beef and orange juice, while China is Brazil’s biggest trading partner worldwide.

According to trade data published by industry group Cecafe, Brazil exported 440,034 60-kilo bags of coffee to the United States in June, which is 7.87 times greater than the country’s sales into China, which came to around 56,000 bags that month.

Cecafe and the Brazilian Ministry of Agriculture did not immediately respond.

Since it was outside of business hours, it was not possible to contact China’s customs authority right away.

Brazil provides over one-third of the annual coffee demand in the United States, with a $4.4 billion trade in the 12 months ending in June.