US Suspends 40% Tariffs on Key Brazilian Agricultural Products in Bid for Trade Progress
The US has suspended 40% tariffs on key Brazilian agricultural products following diplomatic talks, signaling progress but leaving many tariffs in place amid ongoing negotiations.
- • US suspends 40% tariffs on select Brazilian agricultural products, retroactive to November 13, 2025.
- • Decision follows dialogues between Presidents Trump and Lula and meetings between their officials.
- • Brazil welcomes tariff suspension as diplomatic success but notes it is partial relief.
- • Significant tariffs remain on industrial products and investigations continue.
- • Ongoing trade negotiations aim to address remaining tariff barriers and strengthen bilateral relations.
Key details
On November 20, 2025, US President Donald Trump signed an executive order suspending the 40% tariffs imposed on a range of Brazilian agricultural products, including coffee, beef cuts, tropical fruits such as mango and banana, as well as tea, fruit juices, cocoa, spices, and various meats. This tariff suspension is retroactive to November 13 and comes after high-level diplomatic negotiations between Brazilian and US officials in October and November, marking a significant development in Brazil-US trade relations.
Trump stated that the decision was influenced by initial progress made in negotiations following a phone conversation with Brazilian President Luiz Inácio Lula da Silva on October 6, during which both leaders agreed to engage in discussions to resolve trade disputes originating from Executive Order 14.323. The move also reflects US efforts to alleviate inflation pressures affecting sectors dependent on foreign agricultural imports.
Brazilian President Lula welcomed the suspension as a victory for diplomacy and common sense, expressing optimism that ongoing dialogue with the US would help "zero out the issues" and further resolve trade concerns. Lula acknowledged the ongoing nature of negotiations but emphasized the importance of respect in international relations for fruitful cooperation. The Brazilian government echoed this welcoming stance, underlining its determination to continue discussions aimed at ensuring broader tariff relief and protecting Brazilian sovereignty and the interests of its agriculture and industry sectors.
However, experts like Welber Barral, former Secretary of Foreign Trade, caution that the tariff removal remains partial. Many industrial products, including soluble coffee and goods such as steel, aluminum, wood, furniture, and copper, remain subject to significant tariffs, with some rates as high as 40 to 50 percent. Additional restrictions from the ongoing United States Trade Representative (USTR) Section 301 investigation also pose challenges, indicating that comprehensive negotiation and structural solutions are still required.
This development arrives amid a 47% drop in Brazilian coffee exports to the US since September 2024, underscoring the economic impact of tariffs. Brazil continues to be a major supplier of agricultural products to the US, and the partial tariff relief offers a hopeful yet cautious step forward in strengthening trade ties and economic cooperation between the two nations.
In summary, while the US tariff suspension on key Brazilian agricultural exports represents a diplomatic milestone and relief for important sectors, significant trade challenges remain as negotiations continue to address tariffs on industrial goods and broader trade barriers.
This article was synthesized and translated from native language sources to provide English-speaking readers with local perspectives.