Suspension of 40% tariff by the U.S. boosts Brazilian agribusiness exports

The United States government announced the suspension of the additional 40% tariff imposed on a range of Brazilian agricultural products since July. The decision, formalized through an Executive Order signed by President Donald Trump, was welcomed with optimism by producers and exporters, who see the measure as an opportunity to restore access to the U.S. market—the world’s largest food importer.

Products benefiting from the suspension include coffee, beef, açaí, tomatoes, guava, mangoes, bananas, and cocoa, all of which are highly relevant to Brazil’s agribusiness export portfolio.

The tariff suspension is retroactive to November 13 and applies to all shipments cleared in the United States from that date onward. As a result, U.S. importers will be able to request refunds of amounts paid to U.S. Customs and Border Protection related to the additional duty.

The reimbursements are expected to involve millions of dollars in the coming weeks, particularly among traders and Brazilian meatpackers who continued shipping despite the extra costs imposed by the surcharge.

According to Carol Monteiro, an international trade lawyer and partner at Monteiro & Weiss Trade, the measure is an important step, but it does not cover all affected sectors.

“The removal of some products from the list opens the door for further negotiations, but it is important to note that sectors such as seafood were left out. This segment, which has a strong presence in Brazil’s Northeast, still depends on progress in talks with the United States,” the specialist explains.

She adds that there is an expectation that the list of tariff exemptions will be expanded in future rounds of dialogue between the two countries.

Despite the immediate relief for Brazilian agribusiness, trade relations with the United States remain challenging. Monteiro notes that an investigation under Section 301 of U.S. legislation is still ongoing, examining Brazilian trade policies related to digital trade, payment systems such as PIX, preferential tariffs, anti-corruption measures, intellectual property protection, ethanol production, and illegal deforestation.

“The absence of any mention of the investigation in the new Executive Order is a point of concern. The process is currently in the bilateral consultation phase and could have long-term impacts if it results in new tariff barriers,” the lawyer warns.

The procedure is expected to continue until July 2026, when a decision on new trade measures between the two countries may be made.

Analysts believe the suspension of the surcharges strengthens Brazil’s position in the short term, particularly benefiting the coffee and beef sectors, which are already seeing contracts resume after being halted since July.

Even so, the market remains cautious amid the possibility of sudden shifts in U.S. trade policy, as the Executive Order establishes ongoing monitoring of trade conditions.

With the reopening of the market, Brazilian companies will need to act swiftly, ensure proper documentation, and adopt well-defined commercial strategies to take advantage of the new environment.

According to experts, efficiency in adapting to U.S. rules and deadlines will be crucial to securing a competitive edge. In an increasingly regulated global environment, tariff factors weigh just as heavily as product quality and price.

Source: Portal do Agronegócio