How China’s $285M Export Hub in Brazil Will Cost U.S. Billions | WSJ Center Point

Trade Dynamics - China's demand for American agricultural produce recovered after initial trade war dip, but fallout led Beijing to seek alternative suppliers [2] - Brazil has become the number one food supplier to China, with agricultural exports reaching approximately $60 billion in 2023 [3] - China is cutting back on US soybean purchases and pork imports [7] - Trump imposed a 50% tariff on many Brazilian goods [11] Infrastructure Development - Cofco is building a $285 million export terminal in Brazil, potentially impacting American farmers' revenue [1] - Cofco aims to expand export capacity from 45 million tons to 14 million tons [5] - Chinese companies are developing rail projects in Brazil, including a nearly 3,000 mile long railway to a $35 billion megaport in Peru, potentially shortening export times to Asia by up to 10 days [8] Economic Impact - Trump's first trade war led to more than $27 billion in losses of agricultural exports for the US [5] - Brazil's soybean exports are worth over $50 billion, with about 30% passing through Santos [4] - The Port of Santos handled a record 180 million tons of cargo in 2024, with over half being agricultural goods [3] - Brazil is facing de-industrialization due to increased raw material exports to China and manufactured goods imports [9][10]