China slaps 55% tariff on Brazilian beef, rebuffs bid to borrow Uruguay’s quota

China imposed a 55% tariff on Brazilian beef imports starting Thursday, following Brazil's use of its annual beef import quota and refusal to utilize Uruguay's remaining quota, according to industry sources. The Chinese Ministry of Commerce announced the additional surcharge on Wednesday, one day after confirming that Brazil had consumed all 1.106 million tonnes of its 2026 quota.

With the quota exhausted, Brazilian beef above the limit now faces a total duty of 67%, including the standard 12% import tax, a level exporters deem too high to maintain sales. As the quota is depleted, Brazil is effectively barred from its largest beef market for the remainder of the year. In 2025, Brazil's quota of 1.128 million tonnes only covered about 65% of the country's shipments to China, which accounted for roughly 48% of Brazil's total beef exports, valued at around US$8.9 billion out of US$18.3 billion in combined beef sales.

This year, Brazil's quota is set to increase to 1.128 million tonnes, and the government anticipates more shipments to China in 2027. Beijing's safeguard, enacted in January and set to continue until the end of 2028, aims to protect domestic cattle farmers grappling with declining prices due to oversupply and reduced consumption linked to China's economic downturn.

The measure applies to exports above each supplier's allocated quota, with a 55% surtax on excess volumes. Brazil, the world's leading beef exporter, received the largest allocation but the most significant reduction compared to prior sales. ABIEC president Roberto Perosa stated that the Chinese safeguard impacts all nations, but Brazil experienced the steepest cut.

Brazilian President Luiz Inacio Lula da Silva recently confirmed that Uruguay had authorized Brazil to utilize part of its quota, which Uruguayan exporters had not fully utilized. However, the South China Morning Post reported that China has yet to accept Brazil's requests for quota transfers for the current or following year, and is unlikely to authorize direct deals between Brazil and other suppliers for unused volumes.

Agriculture Minister Andre de Paula confirmed that Brazil had not engaged in further negotiations with China regarding a larger quota or utilizing volumes assigned to other countries, emphasizing that the Uruguay deal depended on China's approval.