White House removes all tariffs on dozens of Brazilian agricultural imports

US President Donald Trump signed an executive order eliminating all tariffs on a range of Brazilian agricultural products, including coffee, tropical fruits, fruit juices, bananas, oranges, tomatoes, and beef.

The White House stated that these Brazilian products are no longer subject to the additional 40 percent tariff imposed in July due to political tensions. The order is retroactive to November 13, and all tariffs collected on Brazilian agricultural imports since that date will be refunded.

This action is part of the administration’s efforts to address rising grocery prices, which have drawn criticism. Higher food costs have contributed to a decline in President Trump’s approval ratings, now at their lowest since his return to office, according to a Reuters/Ipsos poll.

The new exemptions follow last week’s removal of 200 major agricultural imports from the baseline 10 percent tariff imposed on all US partners in April.

The US imports approximately $8 billion in food products from Brazil each year, including over $2 billion in coffee, several billion in meat, orange juice, and sugar, as well as smaller amounts of fruit, spices, vegetables, dairy, and other agricultural goods.

Tariffs have increased these commodity costs, with coffee prices rising by about 40 percent in September, partly due to the levies. Brazil remains the world’s largest coffee supplier.

According to Reuters, coffee prices fell immediately after the order. Arabica coffee futures on the ICE exchange, which serves as a global benchmark for physical coffee prices, declined 4.6 percent to $3.5925 per pound.

Brazilian President Luiz Inácio “Lula” da Silva called the decision “a victory for dialogue, diplomacy, and common sense,” and stated that Brazil will continue discussions with President Trump, guided by “sovereignty and the interests of Brazilian workers, agriculture, and industry.”

President Trump stated in the executive order that negotiations are ongoing and progress has been made.

IFPA’s response to Brazilian tariff exemptions

The International Fresh Produce Association (IFPA) applauded the White House decision.

In a press release, the organization stated that the decision will help keep fresh produce affordable for American consumers and ensure all members of the supply chain benefit from “fair trade in fresh produce and floral products.”

The organization emphasized its push for a “balanced approach” that keeps US growers competitive and ensures consumers can enjoy a year-round supply of high-quality fresh produce and floral products.

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