China’s new beef tariffs add momentum to EU-Mercosur deal

China’s decision to impose new tariffs on beef imports from key partners such as Brazil, Argentina and Uruguay is increasing pressure on South American exporters and giving fresh momentum to the long-awaited EU-Mercosur trade deal.

As of January 1st, Beijing is applying additional tariffs of 55% on beef imports exceeding a fixed quota for major exporters, including the United States, Australia, Brazil, Argentina and Uruguay, the Chinese Ministry of Commerce announced on Wednesday. The tariffs will be in place for three years.

For 2026, China has set the total beef import quota at 2.7 million metric tons, roughly equal to the country’s 2024 imports. The move aims to protect the domestic beef industry, which has been under strain in recent years as imports have risen.

In 2024, Brazil shipped more than 1 million tons of beef to China – up 12.7% from the previous year. Exports in 2025 are expected to hit a record 1.6 million tons. Argentina and Uruguay are also major suppliers, shipping 600,000 tons and 200,000 tons of beef, respectively.

Exporting countries are seeking to minimise the immediate impact. Although China is the main destination for Brazilian beef, the impact of the tariffs should be limited, Luis Rua, Secretary of Commerce and International Relations at Brazil’s Ministry of Agriculture, told CNN. He said that Brazil can maintain its export volumes while keeping within the quota.

Still, the new restrictions add to the strategic pressure on South American producers to diversify their export markets and strengthen the case for closer ties with the EU.

In that context, China’s move increases momentum behind the EU-Mercosur trade agreement, which has faced years of political delays and which Brazilian President Lula da Silva has been particularly keen to see signed by the end of 2025.

The signing of the landmark trade deal was postponed until 12 January and pressure is mounting on EU opponents to the agreement.  The governor of Austria’s central bank on Monday called on the government to reconsider its opposition, according to Reuters.

(ow)