(BRASILIA) President Donald Trump cut part of the tariffs on Brazilian farm products on Friday, but kept a 40 percent punitive tariff on coffee, beef and tropical fruits, leaving Brazilian exporters warning that the United States 🇺🇸 market remains largely closed to them. The Trump tariffs rollback, announced for imports effective from 12:01 a.m. ET on November 13, 2025, reduces Brazil’s total duty on those products from 50% to 40%, according to Brazilian officials.
What changed — and what stayed the same
Vice President Geraldo Alckmin said in Brasilia on Saturday that the move removed the extra 10 percent “reciprocal” levy that Trump had imposed in April on what the U.S. leader branded “Liberation Day.” That earlier charge was meant to answer Brazilian measures Washington saw as unfair.
- The Friday decision cancels the 10% reciprocal levy.
- The separate 40% punitive tariff remains intact.
Alckmin told reporters after a meeting with farm sector leaders that “the Friday measure takes away the reciprocal part, but the 40% tariff remains excessively high, especially for coffee.” He said Brazil will persist in efforts to decrease it even more, stressing that while the White House framed the rollback as a gesture, the core problem for farmers and exporters has not changed.
Scope and impact of the punitive tariff
The 40 percent punitive tariff, first imposed in August 2025, targets Brazilian coffee, beef and tropical fruit. It originally came on top of existing import duties and pushed the overall rate to 50% before the recent change. With the reciprocal 10% gone, those products now face a total 40% tariff—still far higher than rates applied to some competing suppliers.
- Before rollback: total duty = 50%
- After rollback: total duty = 40%
Competitive disadvantage — Vietnam and Australia examples
Alckmin highlighted Vietnam as a stark comparison. Vietnam now ships coffee to the U.S. with full exemption from coffee export tariffs, creating a significant price disadvantage for Brazilian beans in supermarkets and coffee chains.
“It is very hard to compete with zero versus forty,” said one Brazilian coffee exporter, speaking anonymously because of ongoing talks with U.S. buyers.
Brazilian beef has also been hurt:
- Brazil’s beef exports to the U.S. have been cut roughly in half, according to officials.
- U.S. importers have shifted purchases to Australia, which faces only around a 10% tariff on beef.
Those differences have shifted trade flows, pushed Brazilian meatpackers to seek other markets or cut production, and affected ranch jobs in Brazil’s interior.
Economic ripple effects
Analysis by VisaVerge.com underscores how targeted trade measures can ripple through local economies reliant on farm exports, influencing:
- Investment choices
- Hiring decisions
- Long-term planning
In Brazil, the farm lobby has pressed President Luiz Inácio Lula da Silva’s government to secure relief from Washington, arguing the tariffs reward competitors with lower shipping costs or lighter regulations.
Political background and diplomatic posture
The tariffs are politically sensitive. Trump linked the August penalties to Brazil’s treatment of former President Jair Bolsonaro, a past ally, publicly criticizing legal cases against Bolsonaro and suggesting trade pressure could continue unless Brazil softened its stance. Brazilian officials say they view the tariffs as political punishment presented as trade action.
Public messaging from Brasilia has been measured. Alckmin and other officials call for “respectful dialogue” with Washington while labeling the 40% rate “unjustified.” Diplomats say Brazil has explored options within the World Trade Organization but hopes bilateral talks yield faster results than formal disputes, which can take years.
Brazil’s response — finding new markets and supporting producers
The Ministry of Agriculture is leading efforts to diversify export destinations for coffee, beef and tropical fruits. Measures include trade missions to the Middle East, Asia and parts of Europe aimed at signing new contracts to offset lost U.S. orders.
- Officials report some progress, but volumes and prices have not yet matched previous U.S. earnings.
- Measures announced to help producers include expanding credit lines and support programs to cushion exporters from the high tariffs.
Producers describe concrete pain on the ground:
- Coffee farmers in Minas Gerais: weakened prices amid higher fertilizer and fuel costs.
- Beef producers in Mato Grosso: delayed investments in equipment and feedlots.
- Tropical fruit growers (mango, papaya) in the northeast: small exporters hit first as buyers switch suppliers.
Effects for U.S. importers and consumers
The picture in the U.S. is mixed:
- Some importers have adjusted by switching suppliers with little trouble.
- Others say limiting Brazilian products reduces choice and, in certain niches, raises prices.
- Food companies built around Brazilian coffee or grass-fed beef must decide whether to absorb higher costs, pass them to consumers, or change supply chains.
Legal authority and trade policy context
Trade experts note that the U.S. president wields broad authority under domestic law to impose and remove tariffs, often with limited congressional oversight. The Office of the United States Trade Representative explains such measures and their legal basis on its website at the Office of the United States Trade Representative.
However, the decision to keep or remove a tariff often reflects political calculations as much as technical trade reasoning.
What comes next
Brazilian officials say they will continue pushing for deeper tariff cuts while trying to shield farmers. Alckmin promised expanded credit and support programs but acknowledged those steps cannot fully replace access to the U.S. market.
“We are going to keep defending our producers and our workers. This change is a small step, but it’s not enough. We need fair conditions to sell our products and compete on equal terms.”
As long as the 40% tariff remains, Brazilian coffee, beef and tropical fruit exporters face a persistent disadvantage relative to rivals like Vietnam and Australia, making true competitive parity a distant goal rather than a present reality.
This Article in a Nutshell
The White House removed a 10% reciprocal levy on Brazilian agricultural imports effective November 13, 2025, lowering total duties from 50% to 40%. But a 40% punitive tariff on coffee, beef and tropical fruits—imposed in August 2025—remains, keeping Brazilian exporters at a disadvantage versus competitors like Vietnam and Australia. Brazil plans market diversification, expanded credit for producers and continued negotiations with Washington while exploring WTO options. Officials call the rollback insufficient and vow to keep pushing for deeper cuts.
