In recent weeks, President Donald Trump signed an executive order eliminating the extra 40% duties on major Brazilian agricultural shipments such as coffee, beef, tropical fruits, juices, cocoa, and spices.
Effective retroactively from November 13, 2025, the action spans over 238 Harmonized Tariff Schedule categories, enabling U.S. Customs refunds for prior collections. Amid rising grocery costs and trade tensions since July, consumers in the U.S. and producers abroad gain relief after cargoes had stalled. Why the reversal after labeling Brazil a security risk?
The spark behind the original levies
Trouble started on July 30, 2025, via Executive Order 14323, invoking the International Emergency Economic Powers Act for a 40% surcharge atop the 10% reciprocal rate, reaching a total of 50%. Trump deemed Brazil’s policies and actions an unusual threat to American security, policy, and economy.
Earlier measures in April inflated imports like açaí, coconut water, and coffee, of which Brazil supplies over 30%. Steel and aluminum duties of 25% triggered Brazil’s Economic Reciprocity Law that same spring.
A turning point in talks
Change came on October 6 through a Trump–Lula call that launched bilateral discussions on Executive Order 14323. Officials highlighted early advances toward exemptions for non-domestic goods.
The November 20 update to Annex I exempted robusta coffee (HTS 0901.11), beef (0201–0202), and bananas (0803) under CBP code 9903.01.90 for repayments. The high-risk export share fell from 36% to 22%. Section 301 scrutiny on digital trade, intellectual property, and deforestation continues. Comparable relief was extended to Ecuador and El Salvador.
Reactions and what’s at stake
Brasília celebrated the diplomatic gain, with Lula thanking Trump and praising Vice President Alckmin and Foreign Minister Vieira’s November 13 meeting with Secretary Rubio.
Agribusiness groups, including the Coffee Exporters Council, reported steadier volumes but flagged ongoing risks. Importers cut expenses, easing budgets without baseline reductions. Ethanol and textiles still face 40–50% surcharges while full trade pacts await Section 301 resolutions.
Negotiations persist, tracking inflation and midterm politics. The key question remains: does targeted relief build stable U.S.–Brazil commerce or only postpone new duties?
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Sources: Gazeta do Povo | CNN Brasil | Forbes
