Here’s a rewritten version of the provided text, focusing on clarity, conciseness, and a more engaging flow, while retaining the core data:
New US Tariffs Could Disrupt Global meat Markets, Impacting Argentina
New U.S. tariffs on imported meat, set to take effect on August 7th, are poised to reshape global trade flows, potentially creating important challenges for Argentina’s meat export sector. While the exact impact on Argentina remains uncertain, concerns are mounting that Brazil, facing higher tariffs, may redirect its surplus meat to markets where Argentina is a major competitor, such as China.
According to Miguel Jairala, an economic analyst for the ABC meat exporters consortium, the U.S. tariff structure will include a base rate of 26.4% plus a country-specific reciprocal tariff. For Brazil, this could mean a total tariff of 76.4% on out-of-quota shipments. This change could also open opportunities for Canada to increase its exports to the U.S.
“Brazil will likely seek to place its surplus in China or other markets in Asia or North Africa,” Jairala explained. “For Argentina, the key concern is what happens in China.”
The imposition of such high tariffs typically leads to a halt in trade operations, as history has shown that “when such a high tariff enters into force, operations disappear,” noted one industry analyst who requested anonymity.
The potential redirection of Brazilian meat exports could also create distortions in alternative markets. this situation is compounded by another structural issue in the U.S. market: the suspension of live cattle imports from Mexico, totaling approximately 1.6 million head annually. This suspension is due to the detection of the boreride worm, a pest that poses a serious health threat and exacerbates the existing meat shortage in the U.S.
If Brazil diverts its surplus to China, it could reduce the flow of argentine meat to the Asian giant. While an immediate impact isn’t expected, a global rearrangement of commercial flows is already underway.
“The problem is not only commercial, but geopolitical,” Jairala stated, emphasizing that this is not merely a tariff war. The U.S. treasury’s tariffs are already double those in Argentina, further intensifying pressure on international prices.Currently, there are no concrete definitions regarding Argentina’s tariff treatment. Theoretically, Argentina is on a preferential list, possibly as a gesture towards the current government. However, without official confirmation, the primary worry for the Argentine export sector remains the risk of Brazilian surplus meat flooding markets where it directly competes, especially China.
