(MENAFN) EIJING has approved nearly 200 Brazilian coffee exporters to begin shipping to China, a move seen as a strategic response to deepening trade friction between Brazil and the United States, according to the Chinese embassy in Brazil.

This decision closely follows the U.S. government's imposition of a 50% tariff on Brazilian coffee and meat—an aggressive escalation in an ongoing trade conflict initiated under President Donald Trump. The steep duties, implemented in late July, hit two of Brazil’s most lucrative export sectors.

“China has approved the authorization of 183 new Brazilian coffee companies to export to the Chinese market,” the embassy announced Saturday via a post on Twitter. It confirmed the policy came into effect on July 30 and will remain active for five years.

Brazilian officials are already bracing for significant fallout. The country’s Ministry of Industry and Foreign Trade warned that 35.9% of its exports to the U.S. would be impacted by the new tariffs, projecting potential annual losses of up to $14.5 billion.

During the 2024/2025 harvest season, Brazil shipped 7.468 million bags of coffee to the U.S., which represented the top export market for Brazilian coffee, according to the Brazilian Coffee Exporters Council. The U.S. made up 16.4% of Brazil’s total coffee shipments, valued at $1.9 billion—along with an additional $1.35 billion in meat exports.

China’s intensified coffee demand appears to have created a timely opening for Brazil. Consumption in China surged by 15% over the last season, based on figures from the International Coffee Organization. Meanwhile, the number of branded coffee shops in China jumped 58% year-on-year, reaching 49,691 outlets, according to insights from market research firm Alegra Group. The data underscores China’s rising influence in global coffee markets.

Despite the backlash, Trump stood by his tariff decision, describing it as a counter to what he called a “witch hunt” against former President Jair Bolsonaro. This defense came even as the U.S. recorded a $6.8 billion trade surplus with Brazil in 2024. Trump has long framed his trade stance as a corrective measure against what he deemed unfair trade practices.

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