US Ends 40% Tariffs on Brazilian Agricultural Products Amid Political and Economic Pressures
The US has unilaterally removed a 40% tariff on key Brazilian agricultural exports following political pressure and rising food inflation, signaling a diplomatic shift but with ongoing negotiations ahead.
- • President Trump lifted the 40% tariff on Brazilian agricultural imports including coffee and beef.
- • The decision was unilateral, driven by US domestic political pressures and rising food inflation.
- • President Lula and Trump held a pivotal October 6 phone call preceding the tariff removal.
- • Brazilian export sectors and officials welcomed the decision as a positive development for trade.
- • Negotiations continue to address broader trade issues highlighted in Executive Order 14.323.
Key details
On November 20, 2025, US President Donald Trump unilaterally lifted a 40% tariff on Brazilian agricultural exports, including coffee, beef, tropical fruits, and several other food products. This move follows a period of heightened political and economic tension, with Trump citing rising food inflation and domestic price pressures as principal reasons for the tariff removal. The tariffs had been initially imposed in July 2025 under Executive Order 14.323, citing national security and economic concerns tied to actions by the Brazilian government and political circumstances involving former Brazilian President Jair Bolsonaro.
Trump’s decision came after a telephone conversation on October 6, 2025, between him and Brazilian President Luiz Inácio Lula da Silva. Lula expressed satisfaction with the tariff lift, calling it a "victory of dialogue, diplomacy, and common sense," and extended invitations for further diplomatic engagement. Brazilian Foreign Minister Mauro Vieira and US Secretary of State Marco Rubio held meetings in mid-November, though sources note these talks were largely superficial, with little technical progress made on broader trade issues.
While official US statements indicated ongoing negotiations to address concerns raised in the original executive order, the tariff removal is widely interpreted as a unilateral measure primarily driven by domestic political needs in the US, particularly ahead of crucial midterm elections. Analysts highlight that soaring US food prices—beef prices increased 17% and coffee prices over 40% in the past year—fueled Trump’s push to ease tariffs to help reduce inflationary pressure on American households.
Brazilian export sectors welcomed the change. Marcos Matos, director-general of Brazil’s coffee export association Cecafé, described the move as a "Christmas gift," emphasizing the opportunity to regain lost market share. Similarly, the Brazilian Meat Exporters Association praised the decision for bringing trade stability. Agriculture Minister Carlos Fávaro underscored the importance of direct dialogue between the two countries’ presidents in breaking through trade tensions.
Despite the positive reception in Brazil, experts caution that removal of tariffs may not immediately lower food prices in the US due to enduring supply chain challenges and adverse weather impacting Brazilian and Southeast Asian production.
In summary, the lifting of the US tariffs on Brazilian agricultural products reflects a complex interplay of domestic political strategy within the US, economic considerations related to inflation, and ongoing diplomatic efforts between the two nations. While it marks a significant step in easing trade frictions, further negotiations remain necessary to resolve broader trade issues between Brazil and the United States.
This article was synthesized and translated from native language sources to provide English-speaking readers with local perspectives.