US Tariffs on Iran Trade Pose Risks to Brazil's Agribusiness Sector
US tariffs targeting trade with Iran threaten Brazil's agribusiness exports, especially in beef, raising economic and diplomatic challenges amid increased beef export volumes.
- • US imposes up to 25% tariffs on countries trading with Iran, impacting Brazil's agribusiness.
- • Brazil's animal protein sector faces significant risks due to reliance on the Iranian market.
- • Beef exports from Brazil increased 81.6% compared to previous year, with export prices rising 10%.
- • Brazil must navigate diplomatic strategies to seek tariff exemptions or mitigate trade impacts.
Key details
President Donald Trump’s recent imposition of tariffs as high as 25% on countries maintaining commercial ties with Iran has set off concerns in Brazil, particularly within its agribusiness industry. These tariffs aim to economically isolate Tehran amid its violent crackdown on protests, with effects extending to nations indirectly trading with Iran, including Brazil.
Brazil’s agribusiness, especially the animal protein sector, relies on Iran as a meaningful market. Although Iran does not rank among Brazil’s largest trade partners, the sector could suffer tangible losses if sanctions lead to trade disruptions. Manuel Furriela, an expert in international law, highlighted that the United States has historically utilized economic pressure to force countries to cut ties with adversarial regimes, recalling Brazil's experience during the Gulf War when it was pushed to halt trade with Iraq.
The Brazilian government has yet to issue an official response but is reportedly cautiously assessing the risks amid an already volatile global trade environment. The critical uncertainty lies in whether Brazil can negotiate tariff exemptions, especially considering its recent pragmatic diplomatic approach. However, the US has made clear that maintaining relations with Iran risks facing these new trade penalties, putting Brazil in a diplomatic and economic bind.
In parallel, Brazil’s beef market shows mixed signals. While domestic beef prices remain relatively stable with some regional variations—such as a price increase in Santa Catarina due to reduced supply—exports of fresh beef have surged, reaching 89,300 tons in the first half of January 2026. This marks an 81.6% increase compared to the same period last year, with the average export price rising 10% to US$5,500 per ton. This export growth underscores Brazil’s heavy reliance on foreign markets for its beef sector, making the impact of US tariffs on trade with Iran even more consequential.
In summary, Brazil faces a complex challenge balancing its economic interests in Iran’s market and potential repercussions from the US tariffs. The situation underscores the delicate geopolitical and economic negotiations ahead for Brazil, with significant implications for its agribusiness exports if it cannot secure exemptions or alternative markets emerge to absorb the impact.
This article was synthesized and translated from native language sources to provide English-speaking readers with local perspectives.
