Understanding the decision that ends the US tariff hike on Brazilian products

The executive order signed by Donald Trump last Thursday (20) removed the 40% surtax on part of “certain agricultural products” imported from Brazil as of November 13.

The list includes some of Brazil’s main exports to the North American market, such as coffee, beef, fruit, and oil.

The measure accompanies the global decree of November 14, which removed the so-called “reciprocal” tariffs on a series of products imported by the United States, also as of the 13th. The action took effect for all markets, and Brazil stopped being impacted by the additional 10% rate last week.

The 50% surtax imposed on items produced in the national territory during the tariff hike will be reduced to zero, and traders who were taxed after the date set for removal will be reimbursed.

The action reverses the July 30 decree, which cited a “national emergency” due to the “unusual” and “extraordinary” policies and actions of the Brazilian government that, according to the Republican, harmed American companies, the freedom-of-speech rights of US citizens, and the country’s foreign policy and economy in general, to justify the application of surtaxes.

Trump mentioned, in a statement released by the White House, the phone call with the President of the Republic, Luiz Inácio Lula da Silva (PT), on October 6, in which the leaders would have agreed to negotiate the tariffs.

The Republican stated that “additional recommendations” from the US government’s team, progress in negotiations with Brazilians, and domestic demand led to the exemption of the charges.

Brazil’s productive sector celebrated the decision.

The Director-General of Cecafé (Brazilian Coffee Exporters Council), Marcos Matos, called the decree an “early Christmas gift” and said that Brazilian coffee had started to see its market share taken over by other origins – such as Colombia and Vietnam.

“Now it’s time to move quickly to regain space in blends and reduce the economic impacts,” said Matos, who had just landed in Belém, returning from COP30, when he received the news.

See below a history of Brazilian green coffee exports to the United States from January 2022. The chart was prepared with DataLiner data:

Brazilian Exports of Green Coffee Beans to the United States | Jan 2022 to Sep 2025 | TEU

Source: DataLiner (Click here to request a demo)

In the meat sector, Abiec (Brazilian Association of Meat Exporting Industries) said in a press release that the reversal “reinforces the stability of international trade and maintains balanced conditions for all countries involved, including for Brazilian beef.”

The association also stated that it will continue “working cooperatively to expand opportunities and strengthen Brazil’s presence in the main global markets.”

In industry, CNI (National Confederation of Industry) assesses the executive order of this Thursday as a “concrete advance.”

“The US government’s decision to remove the 40% tariff on 238 Brazilian agricultural products is a concrete advance in renewing the bilateral agenda and aligns with Brazil’s role as a major trading partner of the United States,” wrote Ricardo Alban, president of the confederation.

Meanwhile, the president of Fiemg (Federation of Industries of the State of Minas Gerais), Flávio Roscoe, reinforced the importance of diplomacy between the countries.

“The removal of the 40% tariff confirms what we have always defended: negotiations are the most effective way to rebalance the business environment. Consistent dialogue between Brazil and the United States is essential to protect the Minas Gerais industrial sector and ensure predictability for our exporters,” he stressed.

Regarding exports, Amcham Brasil (American Chamber of Commerce for Brazil) released a statement saying the decree will have an “immediate effect” and signals a “concrete result” of negotiations between Brazil and the United States.

“The measure represents an important step toward the normalization of bilateral trade, with immediate effects on the competitiveness of the Brazilian companies involved, and signals a concrete result of high-level dialogue between both countries,” it stated.

Among Brazilian government authorities, Carlos Fávaro, Minister of Agriculture, commented to CNN Brasil on the Brazil–US dispute in recent months.

“The two largest nations in the Americas could not remain swayed by gossip, hearsay and intrigue. From the moment the two leaders engaged in dialogue, things returned to normal,” said the minister.

Meanwhile, the Secretary of Commerce and International Relations of the Ministry of Agriculture, Luis Rua, told CNN Brasil that the news is excellent for Brazil, which once again gains access to the American market.

“A very important decision for production chains such as coffee, beef, fruit, coconut water, certain wood products and nuts,” Rua added.

Despite the positive view of the agreement, there is disappointment in the fish sector, which was not included in Trump’s exemption list.

With annual exports to the United States of USD 300 million, the president of Abipesca (Brazilian Association of Fish Processing Industries), Eduardo Lobo, is pleased for the other exporters but remains dissatisfied with the negotiation outcome.

“We are obviously happy for the sectors that advanced, but frustrated not to see progress and prioritization of fish by the Brazilian government,” he said.

Source: CNN Brasil

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