U.S. President Donald Trump signed an executive order on Thursday to remove the 40% tariffs previously imposed on Brazilian food products, including beef, coffee, cocoa, and fruits.
These heavy duties were originally levied in July as a measure to sanction Brazil following the prosecution of former Brazilian President and Trump ally, Jair Bolsonaro, who was convicted of plotting a coup after the 2022 election.
The lifting of the tariffs is effective for Brazilian imports arriving in the U.S. on or after November 13 and may require refunds for duties already collected during the tariff period.
Brazil is the source for approximately a third of the coffee consumed in the United States. Due to the tariffs and other market factors, U.S. retail coffee prices had increased by as much as 40% this year. Commodities analysts predict that the decision will lead to a rapid release of thousands of bags of Brazilian coffee that had been held in bonded warehouses, which were utilized by importers waiting for a policy revision.
Brazil has also become a significant supplier of beef to the U.S., particularly for ground beef used in burgers. The Brazilian beef industry group ABIEC welcomed the move, stating the decision proves the effectiveness of trade negotiations and affirming their commitment to increasing their market share.
While President Trump’s executive order addressed the trade duties, it did not mention the related sanctions previously taken against Brazilian officials involved in the coup prosecution, such as the sanctioning of Supreme Court Justice Alexandre de Moraes under the Global Magnitsky Act and the revocation of U.S. visas for other justices and ministers.
Brazilian President Luiz Inacio Lula da Silva expressed satisfaction with the removal of the 40% tariff.
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