Beijing fast-tracked clearance for 200 Brazilian firms after the US slapped massive tariffs on the South American country's products

Beijing has authorized nearly 200 Brazilian companies to export coffee to the Chinese market amid escalating trade tensions between the South American nation and the US, according to the Chinese embassy in Brazil. The greenlight follows Washington's decision to impose a hefty tariff on Brazilian coffee and other goods.

The 50% tariff, which took effect in late July, targets coffee and meat - two key sectors of Brazil's economy. The move comes amid the broader trade war launched by US President Donald Trump against multiple countries.

"China has approved the authorization of 183 new Brazilian coffee companies to export to the Chinese market," the embassy said Saturday in a post on Twitter, adding that the measure took effect on July 30 and will remain valid for five years.

Brazil's Ministry of Industry and Foreign Trade has estimated that 35.9% of exports to the US will be affected by the tariffs, warning that annual losses could reach up to $14.5 billion.

During the 2024/2025 crop year, Brazil exported 7.468 million bags of coffee to the US, making it the largest destination for Brazilian coffee exports, according to the Brazilian Coffee Exporters Council. The US accounted for 16.4% of Brazil's total coffee exports. In monetary terms, that amounted to $1.9 billion in coffee exports, along with $1.35 billion worth of meat.

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China's growing appetite for coffee appears to align with its latest move to expand imports from Brazil. According to data from the International Coffee Organization, coffee consumption in China grew by 15% in the latest season. At the same time, the number of branded coffee shops in the country surged by 58% over the past 12 months, reaching 49,691 outlets, according to market intelligence firm Alegra Group. The rapid expansion signals China's emergence as a key growth market for global coffee producers.

Trump has defended the steep tariffs on Brazilian goods, citing what he called a "witch hunt" against former President Jair Bolsonaro, despite the fact that the US ran a $6.8 billion trade surplus with Brazil in 2024. Trump had previously justified his trade policies by claims that he intended to correct trade imbalances.