Tariff Landscape for Brazilian Exports
Brazilian Vice President Geraldo Alckmin confirmed on Saturday, November 15, 2025, that key Brazilian exports, including coffee, beef, and tropical fruits, will still be subject to a 40% tariff in the United States. This announcement comes despite a recent decision by US President Donald Trump on Friday, November 14, 2025, to remove some import taxes on various commodities.
Alckmin acknowledged the US decision as 'positive' and a 'step in the right direction' but emphasized that the remaining 40% tariff is 'very high' and represents a 'distortion that needs to be corrected'. He noted that while some products, such as orange juice, would now enter the US with a zero tariff, the additional 40% levy persists for coffee, beef, and tropical fruits like mangos and pineapples.
Evolution of US Tariffs on Brazil
The current 40% tariff is the result of a series of trade actions by the US. Initially, a 10% tariff was imposed on Brazilian goods in April 2025. This was followed by a significant escalation in July 2025, when President Trump levied an additional 40% tariff, bringing the total to 50% on many Brazilian imports. This July decision was partly linked to the trial of former Brazilian President Jair Bolsonaro, which Trump publicly criticized as a 'witch hunt'.
For Brazilian beef, the situation was even more complex, with a combined 76.4% duty applied to shipments exceeding the annual quota, which included a 26.4% duty and the additional 50% tariff. The recent removal of the initial 10% tariff by President Trump has effectively reduced the overall tariff for the affected goods from 50% to 40%.
Economic Impact and Diplomatic Efforts
The imposition of these tariffs has had a tangible impact on Brazilian exports. American purchases of Brazilian coffee, for instance, saw a substantial 51.5% drop between August and October 2025 compared to the same period in the previous year. This places Brazilian coffee at a disadvantage, as competitors like Colombia and Vietnam benefit from zero tariffs in the US market.
While the US was previously Brazil's second-largest beef market, exports to the US declined significantly due to the tariffs, with Mexico stepping in to fill that market position. Despite these challenges, Brazil's overall beef exports have shown resilience, growing due to diversification into other markets, notably China and Mexico. Alckmin indicated that 26% of Brazilian goods now enter the US without additional tariffs, an increase from 23%.
The July tariff decision initially strained US-Brazil relations, leading to what was described as the 'worst U.S.-Brazil relations in history'. However, diplomatic efforts have since improved, including a meeting between Brazilian President Luiz Inácio Lula da Silva and President Trump in October in Malaysia.
6 Comments
Bermudez
Alckmin is right; any reduction is positive. Hope for more to come.
Mariposa
Initially, the tariffs seemed politically motivated, especially with the Bolsonaro trial mentioned. But the recent removals indicate a willingness to negotiate, though the current 40% is still a tough pill to swallow.
Michelangelo
Diplomatic efforts are clearly working. Improved relations are key.
ZmeeLove
Brazil is resilient, finding new markets for its products. Excellent strategy!
Muchacha
While the removal of some tariffs is a positive signal, the remaining 40% on key exports still represents a significant barrier. True progress requires addressing these core issues.
Bella Ciao
Our coffee farmers are suffering huge losses. This tariff is devastating.