President Donald Trump will announce new tariffs today for almost the entire world. The United States is currently the third-largest importer of Paraguayan beef, so the industry is eagerly awaiting possible changes.
Daniel Burt, general manager of the Paraguayan Meat Chamber, spoke about the so-called "Liberation Day" from the United States. He explained that the possibility of Donald Trump imposing new tariffs on Paraguayan products cannot be ruled out.
He explained that the country can currently send 65,000 tons of meat to the United States, and the tariff is at 26.4%.
"With this tariff, we have far exceeded expectations, due to a demand issue where American meat is increasingly expensive to produce," he declared.
He emphasized that the United States is seeking lean beef because local beef is high in fat. He noted that this is why the country quickly became the third-largest importer of Paraguayan beef.
He recalled that the threat from American cattle ranchers who want to "drive Paraguay out" by arguing that the beef doesn't meet quality standards and that the country was only benefited by "political favor" remains.
"Before all this happened, we were already under threat, but no one knows (if new tariffs will be imposed); it's the uncertainty that's worrying. Theoretically, Paraguay would be in a favorable position due to its trade deficit with the United States," he told ABC Cardinal.
He emphasized that those discussing the issue are merely speculating and that the union is waiting for the possibility that the tariff could change.
“We don't have any kind of guarantees at the moment, we are already
"We're sending meat at competitive prices with that tariff, but it has to do with the fact that American meat is too expensive. But they're facing an inflationary problem; I think they're going to be careful about which sectors and countries to impose tariffs on," he said.
He emphasized the need for Paraguay to have an ambassador in the United States in this context. Regarding the volume of shipments, he noted that between January and March of this year alone, 10,000 tons of meat were shipped, valued at US$60 million.
PRICE OF MEAT IN PARAGUAY
At another point, he emphasized that the country is working to open up more markets and eliminate health barriers. It is currently aiming to expand its reach into Southeast Asian countries (Japan and Korea, for example).
Regarding how these factors affect the price of meat, he noted that it must be taken into account that production costs are currently rising, as are the demands for quality and the availability of a variety of cuts.
He pointed out that "sometimes yes and sometimes no" meat is more expensive in our country, depending on the time of year.
However, he emphasized that several factors are at play, such as the formalization of the sector and the wide variety of new products, which simultaneously increase the cost of the production system.
