U.S. Removes 40% Tariff on Brazilian Agricultural Products, Boosting Exports and Lowering Coffee Prices

In a significant development for Brazilian agriculture and trade, U.S. President Donald Trump has revoked a 40% tariff on 238 Brazilian products, including coffee, meat, fertilizers, and fruits such as mango, açaí, coconut, and pineapple. This removal, retroactive to November 13, represents a pivotal shift intended to enhance economic relations between Brazil and the United States.

The American Chamber of Commerce for Brazil (Amcham) welcomed the tariff removal as a positive step towards normalizing bilateral trade and improving the competitiveness of Brazilian companies in the U.S. market. Ricardo Alban, president of the National Confederation of Industry (CNI), described it as a concrete advancement in trade relations, noting Brazil's importance as a major U.S. trading partner. Despite this progress, Minister Geraldo Alckmin highlighted that 22% of Brazilian exports to the U.S. still face tariffs, signaling ongoing challenges in trade negotiations.

The removal notably impacted global coffee prices. Brazil, the world's largest coffee producer and supplier of about one-third of the U.S. market, saw Arabica coffee futures drop 4.3% following the announcement. Retail coffee prices in the U.S. had surged by 40% in September 2025 due to tariffs and inflationary pressures, and the tariff rollback is expected to alleviate such cost increases. However, traders remain cautious, citing climatic risks and low global supply as factors sustaining higher prices.

Sebrae Nacional President Décio Lima emphasized the positive implications for small Brazilian businesses, which have experienced a 120% increase in international sales over the past decade. Sebrae continues to support these businesses by facilitating international ventures and credit access, with over R$19 million in deals recently closed. As part of the "Plano Brasil Soberano," the government has also postponed tax collections for affected micro and small enterprises.

The tariff elimination reflects sustained diplomatic efforts, with statements crediting the firm stance of Brazilian leadership, including President Lula and Vice President Geraldo Alckmin. While the move promises to revitalize Brazil-U.S. economic ties, industry groups stress the importance of continued dialogue to address remaining tariffs on products such as machinery, footwear, and seafood.