The United States has reversed its hefty tariffs on Brazilian food products, marking a major shift in how the White House is handling trade at a time when food costs continue to squeeze households.
The 40% duties, imposed in July to pressure Brazil over actions linked to the prosecution of former president Jair Bolsonaro, had raised costs across a range of imports.
The new decision signals a move toward easing domestic price pressures while reshaping the country’s approach to global food trade.
The rollback applies to Brazilian goods entering the United States on or after 13 November. It may also lead to refunds for importers who paid the higher duties while the tariffs were still in place.
This follows a similar order issued last Friday that removed duties on agricultural goods from other countries, reflecting a broader effort to stabilise food prices without disrupting supply chains.
Coffee impact
Brazil supplies roughly one-third of the coffee consumed in the United States, which remains the largest coffee market in the world.
It has also become a key source of beef, especially the cuts used for burgers.
Retail coffee prices in the United States jumped as much as 40% this year due to the earlier tariff and reduced production caused by severe weather in major coffee-growing regions.
The tariff removal is expected to release supplies that have been sitting idle for months.
Thousands of bags of Brazilian coffee have been held in bonded warehouses, where importers can store products without paying duties.
Many importers moved their shipments into these facilities when the July tariff was announced, waiting for a potential policy shift.
With the duties now lifted, those supplies are likely to re-enter the market quickly.
Trade response
Brazil’s agricultural industry sees the decision as a signal of improving trade conditions.
The country’s beef exporters expect smoother access to the United States market, and producers say they will continue working to expand their presence.
Other sectors, including fruit and cocoa exporters, also stand to benefit from the removal of the 40% tariff.
At the same time, the White House did not connect this policy change to the sanctions placed on Brazilian authorities involved in Bolsonaro’s prosecution.
Under the Global Magnitsky Act, Supreme Court Justice Alexandre de Moraes and his wife remain sanctioned, and several other officials still face revoked United States visas.
Political stakes
Rising food costs have put pressure on the US administration.
Lower duties on imports from Brazil could help ease some of that pressure if retailers begin adjusting prices as new shipments arrive.
Brazil’s President Luiz Inacio Lula da Silva said on Thursday that he was glad to see the tariff removed, noting that the decision supports the trade relationship during a complex period for both countries.
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