Can Brazil find an alternative to US tariffs in China? Understand

With the tariff hikes imposed by the United States, China has adopted a "clear" strategy to strengthen relations with its trading partners. Thomas Law, president of Ibrachina (Brazil-China Sociocultural Institute), told CNN this analysis.

"Instead of relying on a single strategic supplier, China has sought alternatives in nations with which it maintains good diplomatic relations and institutional stability. In this scenario, Brazil emerges as a relevant trading partner," says Law.

“Products that were previously mostly imported from the US are now being purchased from countries like ours, especially in the food, energy, commodities, and even industrial inputs sectors.”

Since August 6, the United States has been applying a 50% tariff on products imported from Brazil , the highest of the rates applied by Donald Trump .

The Republican's trade war has fronts all over the world, and the clash with China escalated to an even more drastic level at the beginning of the year .

Until the parties agreed to sit down for talks, the White House confirmed that the tariffs applied to Chinese products exceeded the 200% level in April .

Amid negotiations that are progressing slowly, the rate charged by the US has been maintained at 30% , but, so far, without any guarantee that it will not rise again .

Brazil already has Beijing as its main trading partner. However, its export agenda to China is very different from that to the United States, which is a unique case.

While a large part of the country's sales to the Chinese - and the world - is concentrated in commodities and agribusiness products, Brazil's shipments to North Americans are largely composed of value-added products from the manufacturing industry .

Some analysts view the redirection of products intended for the US to China as a challenge . Still, amid trade tensions, the Lula administration and Beijing have been exchanging pleasantries.

China's Interests in Brazil

In late July, a Chinese Foreign Ministry spokesperson highlighted China's willingness to deepen ties with Brazil in strategic areas .

More recently, on the eve of the tariff increase against Brazilian products coming into effect, the Asian country's embassy in Brasília published posts praising Brazilian coffee , with the announcement of the authorization of new exporting companies and signs of the growth in consumption of the drink in the Chinese market.

“The recent authorization of 183 Brazilian companies to supply coffee is an example of how this realignment opens a concrete window of opportunity for Brazilian exporters,” observes Thomas Law.

In addition to this example, Daniel Lau, a business consultant specializing in the Asian country, highlights that Beijing authorized 30 Brazilian sesame exporters - increasing the number of authorized exporters from 31 to 61, almost doubling the number of permits - and 41 exporters of animal flour to sell their products to the Chinese.

For Fagner Santos, a foreign trade and Chinese market specialist at JF Comex Consultoria, these movements demonstrate "a strategic redirection of Brazilian exports, which were previously focused on the US and are now finding space in the Chinese market."

On Saturday (6), the Minister of Ports and Airports, Silvio Costa Filho, said during the Esfera Infra Seminar, that China and other Asian countries want to expand their commercial relations with Brazil amid the tariff hike in the United States .

In parallel, a concrete example of an attempt to bring the parties closer together came from Ceará , the state of which the governor, Elmano de Freitas (PT), met, in the middle of the week, with the Chinese ambassador to Brazil, Zhu Qingqiao, to discuss economic partnerships.

In an interview with CNN in early June, before the announcement of the 50% rate, the manager of the Asia-Pacific office of ApexBrasil (Brazilian Trade and Investment Promotion Agency), Victor Queiroz, had indicated that, at that time, the tariff hike was still too recent - and on a smaller scale than in Brazil - to determine what influence it could have on the trade relationship with China.

However, he projected that the prolongation of trade tension could represent a “gateway” for Brazil to “stand out” and seek to vary its market opportunities with the Chinese.

Semiconductors, juices, ice cream, logistics, delivery, SAF (Sustainable Aviation Fuel), renewable energy sources , and even medicine are some of the sectors that Queiroz highlighted as being of interest to China in Brazil.

Apex has organized a strategic map of markets and commercial opportunities for Brazilian exports in China , which includes more than 400 items and can be accessed on its website.

The conversation with the agency's staff took place in the context of the investments announced by our main trading partner in the country . According to the experts interviewed for this report, this is an opportune moment not only for Brazil to bring its products to China, but also to attract Chinese investment to the country .

"We've already seen a significant increase in Chinese investment in Brazil, and the trend is set to increase even further with the new wave of private companies exploring the world and seeking new markets. And, definitely, Latin America and Brazil are benefiting from the arrival of new Chinese companies in the region," observes Daniel Lau.

Queiroz explains that “the exchange is that they come here to add value.”

"Investment not only in infrastructure, but also in the services sector, which has a significant impact, generates income, and drives the market. This stimulates consumption and improves the quality of services. They will add value to our products and export them globally, in addition to selling in Brazil. So it's not just about investing and dominating Brazil, it's about generating income and jobs," the ApexBrasil spokesperson noted.

What should Brazilian companies do to position themselves in the Chinese market?

The experts interviewed for the report emphasize that the Chinese market has its peculiarities, so having a thorough understanding of its reality and culture is an essential step to establishing a strong relationship with local consumers.

"To enter the Chinese market, you need to understand that its political, economic, and financial systems are different from those of other countries. It's essential to have a prior study of the characteristics of this market to understand the local business dynamics, which are based on trust, long-term relationships, and mutual respect," advises Thomas Law of Ibrachina.

Thus, Daniel Lau advises that Brazilian businessmen visit China and practice ' Guanxi ', a good relationship cultivated with Chinese businessmen.

"Brazilian entrepreneurs need to take advantage of this important window of opportunity in the Chinese market and expand their contacts in China through local partners, local distributors, trading companies, etc.," Lau says.

He points out that there are already plans for several missions in the second half of 2025 to bring Brazilian entrepreneurs to China, as well as solo trips. "The important thing is to visit China, learn about its market, and how to sell to it."

Fagner Santos, from JF Comex Consultoria, points out that it is essential for exporters to participate in international fairs, such as the Canton Fair , which takes place between October and November.

The president of Ibrachina also emphasizes that exporters must be aware of specific regulations, health requirements, certification processes, and the correct translation of labels and packaging.

"Another point is the protection of intellectual property. Registering trademarks and patents in China is a mandatory step before any negotiation," Law emphasizes.

"The support of a specialized consultancy and the search for reliable local partners are key factors for success. There are excellent federal government programs that aim to assist Brazilian entrepreneurs in this process, such as the Exporta Mais Brasil Program, created by Apex," he suggests.

Strengthening government export programs is one of the measures discussed by members of the Lula administration that should be included in the aid plan for sectors affected by the tariff hike.

"It's time to act. The American tariff hike is irreversible, and relying exclusively on the US market is risky. Entrepreneurs need to diversify and explore China's potential. And this requires a physical presence, networking , and strategy. Many are already doing this—and successfully. Now it's also the turn of more small and medium-sized companies to seize this moment ," Santos concludes.