The United States is issuing tariff exemptions for hundreds of food and agricultural products from Brazil, following an executive order signed by U.S. President Donald Trump. These exemptions cover 238 classifications and 11 categories of food and agricultural goods, including coffee, beef, spices, and tropical fruits and fruit juices. The exemptions are retroactively effective from Nov. 13, and any refunds will be handled by U.S. Customs and Border Protection.
The Trump administration’s decision to grant these exemptions comes as a relief for Brazil, especially for its coffee exports. Brazil is a major player in global coffee production, accounting for 37% of annual production. The tariffs on coffee have added pressure to already rising prices due to climate change affecting harvests.
In addition to the global reciprocal tariffs, imports from Brazil have been subject to an extra 40% levy since Aug. 6, following a previous executive order by Trump declaring a national emergency. This action was taken in response to Brazil’s policies that were perceived to threaten U.S. national security, foreign policy, and economic interests.
Trump’s decision to grant these exemptions is a result of “initial progress” in trade negotiations with Brazil. The negotiations began after a phone call between Trump and Brazil President Luiz Inácio Lula da Silva on Oct. 6 and are still ongoing. The Trump administration also initiated a Section 301 investigation into Brazil’s trade practices in July, focusing on digital trade, anti-corruption enforcement, and ethanol market access.
Overall, the tariff exemptions for Brazilian food and agricultural products mark a positive step in the trade relations between the United States and Brazil. It is a significant development that could benefit both countries economically and strengthen their trade ties in the future.
