FMD-free status boosts exports despite US tariffs
Brazil is making a major move from bulk beef supplier to a competitive premium beef exporter. In June 2025, the country achieved certification as free of foot-and-mouth disease (FMD) without vaccination, a milestone that opened high-value markets such as Japan and South Korea. Shortly after, a Japanese trade delegation visited, followed by a beef export deal with Vietnam.
Alongside its growing presence in Asia, Brazil sharply increased beef shipments to the U.S. In May 2025, it exported 175 million pounds of beef to the American market—five times more than in May 2024. Overall, Brazilian beef exports more than doubled year-to-date, driving a 60% rise in total U.S. beef imports.
The momentum slowed when the U.S. introduced a 50% tariff on Brazilian beef in July, which, combined with existing duties, pushed the effective rate to 76.4%. In response, Brazil’s leading exporters—Minerva, JBS, and Naturafrig—halted U.S. shipments and redirected beef to Asia and the Middle East. Industry estimates suggest potential losses of more than $1 billion in the second half of 2025.
The U.S. also launched a Section 301 investigation into Brazil’s trade practices. Although exemptions were granted for nearly 700 Brazilian goods, beef was excluded from the list.
Meanwhile, the U.S. strengthened its beef trade position in Asia by signing new agreements with Japan, the Philippines, and Indonesia. Asia remains the top market for American beef, which is recognized for its quality and reliability.
Despite U.S. dominance, high prices and limited supply in Asia may create openings for Brazil. With lower production costs and improved health credentials, Brazil is well-positioned to compete on value and quality in premium markets.