President Trump suspends tariffs on coffee, meat, bananas, acai, and other agricultural products

Celso Amorim, special assistant to the Brazilian president, told G1 that he viewed the announcement positively.

“This is good news for our producers and North American consumers. We hope that other companies that benefit from the products we manufacture, such as shoes and machinery, will follow suit,” Amorim declared.

Agriculture Minister Carlos Favaro told Globo News that he had met with his team to assess the US decision and celebrated “the return to dialogue.”

The Brazilian Meat Export Industry Association (Abiec) also celebrated the announcement.

“This step strengthens confidence in the technical dialogue between the two countries and recognizes the importance of Brazilian meat, which is characterized by quality, regularity and its contribution to global food security,” the association said.

“Tariff reductions will restore predictability to our industry and create better conditions for commercial transactions to function smoothly.”

President Trump’s announcement could have a positive impact on Brazil’s economy, as the items for which tariffs are currently suspended include items for which Brazil is a related supplier to the United States, its second largest trading partner.

Analysis by the Tax Foundation’s Research Center highlights that Brazil is the fourth largest supplier of food to the United States, with imports of USD 7.4 billion, behind the European Union (USD 31 billion), Mexico (USD 17.6 billion) and Canada (USD 15.6 billion).

For example, Brazil is a major supplier of coffee to the United States, accounting for about one-third of all imports.

Although the United States is the world’s largest consumer of this product, it does not actually produce it. merchandise.

Coffee prices have inflated significantly in the United States this year, and tariffs on Brazilian products have exacerbated this scenario, raising concerns that Mr. Trump will come under pressure on the economy, an important area for voters.

According to calculations by BBC News Brazil based on official MDIC data, the volume of Brazilian coffee sent to the US in September fell by almost half (-47%) compared to the same month in 2024.

According to BBC News Brazil at the time, in his first meeting with President Luiz Inacio Lula da Silva (PT) to discuss the tariffs in early October, the US president acknowledged that the US was “overlooking” some Brazilian products that would be affected by the tariffs, and specifically mentioned coffee.

Brazil is also the fourth largest supplier of mangoes and guavas (together in the nomenclature of the products used in foreign trade) to Americans, with approximately US$56 million of these products shipped to Brazil in 2024.

According to the Economic Complexity Observatory, Mexico was the leading supplier with US$550 million, followed by Peru (US$96.9 million) and Ecuador (US$56 million).

In the United States, mangoes are grown in states such as Florida, California, and Hawaii, but much of domestic consumption is met by imports. So is guava, which is grown sparingly in Florida, Hawaii, and Puerto Rico.

As BBC News Brazil reported, Brazilian mango producers have been hit hard by US tariffs, with production slowed by canceled orders.

Brazil remains the world’s largest beef exporter, accounting for 23% of U.S. beef imports, according to calculations by Genial Investimentos.

The United States is the second largest market for Brazilian products after China.

But unlike fruits such as coffee and mangoes, the United States is also a major producer of meat.

However, the country is facing a historic decline in beef supplies.

The U.S. currently has the lowest cattle numbers in 74 years as ranchers cut production after years of drought and low prices.

At the same time, consumer demand remained strong and supermarket prices rose.

Suspending meat tariffs should also benefit Argentina, which accounts for 2.1% of U.S. imports and is ruled by Trump ally Javier Milley.

President Trump has always maintained that his tariffs do not result in higher prices for American consumers, but the recent waivers signal a change in position.

Economists had already warned that companies would pass on the cost of import duties, resulting in higher prices for consumers.

Although inflation remains more subdued than many analysts expected in September, most items tracked in the Labor Department’s inflation report showed gains, with food up 2.7% from a year earlier.

In another step in response to Americans’ concerns about prices, the Trump administration announced Thursday (11/13) that it would reduce import tariffs on coffee and bananas as part of trade agreements with four Latin American countries: Argentina, Guatemala, Ecuador, and El Salvador.

Friday’s announcement is not a direct part of ongoing negotiations between Brazil and the United States regarding tariffs announced in July that would apply specifically to Brazilian products.

These were adopted in response to a decision by Trump’s ideological ally, former President Jair Bolsonaro, and include an additional 40% tariff on most Brazilian products exported to the United States, on top of the 10% reciprocal tariff announced in April, thus increasing the tax rate on some Brazilian products to 50%.

Lula has so far not commented publicly on the U.S. government’s decision to remove 10% tariffs on some agricultural products.

This week, Brazilian Foreign Minister Mauro Vieira and U.S. Secretary of State Marco Rubio met twice to discuss the issue, first in Canada and then in Washington.

After the meeting, Vieira said he believed it was possible to reach an agreement this month, which would lead to broader negotiations in the coming months.

“(The agreement) establishes a roadmap for negotiations that could last two to three months, after which all issues between the two countries will be finally resolved,” Vieira said.

The minister said that during a virtual meeting on November 4, a proposal was presented to the American side that was “a response to the initial proposal presented by the American side on October 16.”

Vieira stressed that a U.S. response could emerge within days.