Brazil's Strategic Port Thrives Amid China's Shift from US Trade Relations

By Peter Millard and Dayanne Sousa
Apr 8, 2025 (Bloomberg) – While Donald Trump’s trade policies have sent global commodity prices tumbling, they’ve inadvertently created a silver lining for one of Brazil’s key ports. Porto do Acu, located in Rio de Janeiro state and recognized as the country’s top oil export hub, is witnessing a surge in export activity.

The port had already been ramping up its capacity to alleviate bottlenecks affecting agricultural and mineral exports. Now, with the ongoing trade tensions between the U.S.and China, demand has spiked even further. “As soon as the tariffs were announced, we noticed an increase in demand,” shared João braz, logistics director at Porto do Acu. “We’re really positioned well here.”

This situation underscores how swiftly other countries can capitalize on shifts in global trade dynamics when major players like the U.S. and china clash over tariffs.Recently,China declared it would retaliate against Trump’s hefty 34% tariff on its goods with an equivalent duty—an action that could open doors for Brazilian exporters to capture market share.

Brazil stands out as China’s largest trading partner while competing fiercely with the U.S.for dominance in agricultural exports globally. Additionally,Brazil is not only South America’s leading oil producer but also ranks among the world’s top iron ore exporters essential for steel production.

In february alone, the Trump governance announced plans to impose a 25% tariff on steel and aluminum imports into the U.S., prompting a notable uptick in demand for pig iron—a crucial raw material used by American steel manufacturers—at Porto do Acu; pig iron exports surged by 50% compared to all of last year.

When it comes to soybeans—a crop where Brazil leads globally—the country is poised to outpace U.S. production significantly this year due to favorable weather conditions and expanded planting areas; Agroconsult predicts record yields of around 171.3 million tons.

Recent statistics reveal that Brazilian shipments across various categories are benefiting from these global shifts too: fresh poultry exports reached approximately 476,000 tons in March alone—a remarkable increase of 19% from last year—while beef shipments saw a rise of about 20%, especially towards China.

Though,there are challenges ahead; Brazilian farmers are producing more soybeans than local railways or ports can handle efficiently. “There’s quite a backlog at both ends,” noted Eugenio Figueiredo, CEO of Porto do Acu during an interview.

To tackle this issue head-on, Porto do Acu operates agricultural exports through its multipurpose terminal known as T-Mult and aims to double its annual capacity there to five million tons shortly while dredging channels so two panamax vessels can be loaded concurrently.

Currently at least some clients are stockpiling soybeans at Porto do Acu facilities with most destined for Chinese markets down the line.

Additionally contributing to increased business at Porto do Acu is a container shortage caused by disruptions from Iranian-backed Houthi militants targeting commercial shipping routes through critical areas like the Red Sea—this has affected coffee exporters significantly as Brazil leads globally in coffee shipments; some sellers have begun using oversized bags at Porto do Acu rather of standard containers due to delays elsewhere.

Since starting big bag coffee shipments back in 2024—and anticipating higher volumes this year—the port also plans on expanding into sugar handling soon enough.
“Clients need alternatives,” Braz emphasized regarding current logistical challenges faced within their system which remains bottlenecked.