China Slams 67% Tariff on Brazilian Beef After Quota Exhausted, Halting Exports

China has begun applying a prohibitive 67% tariff on Brazilian beef exports, a measure that effectively shuts down Brazil-China trade in the commodity for the remainder of the year. The new duty took effect on October 1st after Brazilian beef shipments exhausted the annual import quota of 1.1 million metric tons set by Beijing. The total tariff is a combination of the standard 12% import duty and an additional 55% surcharge now being levied on all over-quota volumes.

The measure is part of a trade safeguard mechanism China introduced in January to protect its own domestic cattle producers who have been grappling with oversupply and weaker consumption. Brazil, the world’s largest beef exporter, hit the 1.1 million metric ton limit in late September. With the 67% duty considered financially unworkable for exporters, this development cuts off Brazil from its single biggest foreign buyer.

The immediate consequence for Brazil's powerful agribusiness sector is a sharp reduction in expected export volumes. The Brazilian Association of Meat Exporting Industries (ABIEC) estimates that the country's total meat exports will fall by about 10% this year due to the Chinese restrictions and concurrent market issues in the European Union. China was the destination for nearly half of all Brazilian beef exports in 2025. Brazilian President Luiz Inácio Lula da Silva had sought to circumvent the restriction by lobbying China to allow Brazil to use the unused quota of neighboring Uruguay, a proposal Beijing has reportedly rejected.

The safeguard mechanism is set to run until the end of 2028, adding a layer of permanent uncertainty for Brazilian producers. The industry is now focused on whether China’s Ministry of Commerce will renew its export 1.1 million ton quota system for 2027 by the end of the year, a decision that will shape the industry’s outlook for the coming season.

What it touches

The move applies significant pressure to the margins and production volumes of Brazilian meat companies with high exposure to the Chinese market. Companies like JBS S.A. (JBS on the NYSE), which operate large beef slaughtering and processing operations in Brazil, are particularly exposed as they must now aggressively seek alternative, smaller markets for a substantial volume of beef originally destined for China.