United States Lifts 40% Tariffs on Brazilian Coffee and Beef Exports

Tariff Reversal Signals Thaw in US-Brazil Trade Relations

The United States has officially lifted the 40% tariffs previously imposed on Brazilian coffee and beef, a move that took effect retroactively on November 13, 2025. President Donald Trump signed the executive order on November 20, 2025, reversing a levy that had significantly impacted these key Brazilian exports since its imposition earlier this year. The decision is expected to alleviate rising food costs for American consumers and strengthen trade ties between the two nations.

Background of the Imposition

The 40% tariffs were initially imposed in July 2025, taking effect in August, through Executive Order 14323. This measure was enacted due to 'concerns over Brazil's policies and practices impacting U.S. national security and foreign policy,' with several reports linking the decision to the prosecution of former Brazilian President Jair Bolsonaro, a political ally of President Trump. Prior to this, a 10% reciprocal tariff had been applied to many global agricultural imports, including from Brazil, in April 2025.

Reasons for Reversal and Economic Impact

The White House cited 'initial progress in negotiations with the Government of Brazil' as a primary reason for the tariff removal, following discussions between President Trump and Brazilian President Luiz Inácio Lula da Silva, and meetings involving Brazilian Foreign Affairs Minister Mauro Vieira and US Secretary of State Marco Rubio. The lifting of tariffs is also seen as an effort to combat soaring food prices in the United States, where coffee prices had risen by as much as 40% year-over-year. The Brazilian association of beef exporters, Abiec, lauded the executive order, noting that monthly Brazilian beef exports to the US had halved between August and October under the previous tariff regime.

Remaining Tariffs and Future Outlook

While green coffee, beef, cocoa, and various fruits are now exempt, certain Brazilian products continue to face tariffs. Notably, instant coffee remains subject to a 50% tariff, a point of concern for the Brazilian Instant Coffee Association (ABICS), which stated that 'instant coffee was not included in the exemptions specified in the annexes to the Executive Orders.' Additionally, tariffs persist on Brazilian fertilizers, minerals, fossil fuels, oil products, and manufactured goods such as vehicle parts, steel, aluminum, and copper. Both the US and Brazilian governments have expressed optimism for continued negotiations to further resolve trade disputes and enhance bilateral relations.