Cattle Group Supports Brazil Tarriff Increase

Brazil operates under a tariff rate quota system, allowing a set volume of beef imports into the US. The Trump administration recently raised that tariff to 50% on our calf United stock Growers of America. CEO Bill Bullard shares his perspective on this move.

"The intent here is to allow Brazil to ship some beef into the United States. So after they exceed that 65,000 metric tons, then we impose the 26.4% tariff. The purpose of that over-quota tariff is to deter any additional imports. But what we found is that Brazil has exceeded the 65,000 metric tons early in the year, and but then they keep sending us more beef, even after paying the 26.4% tariff rate."

And even though a 50% tariff is more effective, Bullard says challenges still remain.

"The problem when you put a tariff as a percentage on a product rather than a specific tariff. When we have Brazil just on a 50% tariff, it's based on the value of the product. So cheating happens in that type of a scenario, and Brazil can say that the product is worth much less than what its actual value, therefore allowing Brazil to undercut the 50% level and continue shipping deep into the United States. But a 50% tariff is far better than what we've

had ."

R-CALF USA's,  Bill Bullard.