China has authorized its BRICS counterpart, Brazil, to free market access to bypass US tariffs. Trump imposed 50% tariffs on Brazil, where coffee exporters are the hardest hit. One third of coffee supply to the US comes from Brazil, and coffee drinkers in America might see their brew turn expensive if importers don’t absorb the tariff costs.

BRICS member China is helping other countries bypass the US tariffs by allowing free access to its market. China has granted 183 coffee companies in Brazil to export their coffee to the domestic market. No import duties will be imposed, making Brazilian coffee companies gain from the new trade development, reported Brazil’s local outlet Band News.

Therefore, what Brazilian coffee firms spend to send to the US can be recovered from the Chinese markets. The move is a win-win situation for BRICS members China and Brazil, as it gives them the opportunity to bypass tariffs. The agreement is valid for the next five years until 2030, when Trump will complete his term in office.

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BRICS Countries Look at Various Options To Bypass US Tariffs

Brazil has immense potential in coffee as it supplies small, medium, and large roasters alike. US consumers of Brazilian coffee are high, and the tariffs could affect their pockets and palate. The Chinese market is becoming accustomed to Brazilian coffee exports, which can gain a significant market share. China is helping BRICS countries to bypass US tariffs and also gain their trust while they’re at it.

In addition, China has approved 30 more Brazilian companies to export sesame for the next four years under the agreement. The exports will not face duties, helping the BRICS countries to earn more in a way to bypass US tariffs. Developing nations are now doing everything to safeguard their economies and help build their local economy in the turbulent times.