China welcomes 183 Brazil coffee sellers in wake of US tariffs

China has given the green light to 183 additional Brazilian coffee companies to begin exporting their products to the Chinese market, according to a Saturday social media post from the Chinese embassy in Brazil.

This development, effective as of July 30, comes as a welcome relief for Brazilian exporters following the U.S. government's recent decision to impose significant tariffs on Brazilian coffee and other goods.

The new export approvals from China will remain valid for five years, the embassy noted. Meanwhile, the U.S. is set to implement a 50% tariff on select Brazilian imports starting August 6.

This steep levy poses a serious hurdle for commodities traders and Brazil's coffee industry, which has traditionally relied on the U.S. market to purchase around 8 million bags annually.

While China is Brazil’s largest overall trading partner, the U.S. remains a major buyer of key Brazilian exports like beef and orange juice.

In June, Brazil shipped 440,034 60-kilo bags of coffee to the U.S.—nearly eight times more than the 56,000 bags exported to China during the same period, according to trade figures from the coffee industry group Cecafe.

Officials from Brazil’s agriculture ministry and Cecafe declined to comment immediately. China's customs authority also could not be reached, as the inquiry came outside regular working hours.

Brazil currently supplies about one-third of the U.S.'s coffee needs, a trade relationship valued at $4.4 billion over the 12 months ending in June.