Trump signs order to remove tariffs from Brazilian beef, coffee
The move follows the administration’s similar order last Friday to lift tariffs on various agricultural products from other countries as the White House made a U-turn on some tariffs that have increased food prices in the United States.
According to the text of the order released by the White House, the order will affect Brazilian imports to the United States on or after November 13 and may require a refund of duties imposed on those goods while tariffs are still in effect.
Brazil normally supplies one-third of the coffee used in the United States, the world’s largest coffee drinker, and has recently become a major supplier of beef, particularly used in hamburgers.
U.S. retail coffee prices have risen as much as 40% this year due to tariffs and other market factors such as production shortages caused by weather conditions.
Rising food prices are a major factor behind Trump’s approval ratings, which have fallen to their lowest level since his return to power, according to a Reuters/Ipsos poll. “You can expect thousands of bags of Brazilian coffee sitting in bonded warehouses to begin moving quickly to U.S. roasters,” said commodity analyst Judith Ganes, president of J. Ganes Consulting. Bonded warehouses are storage facilities where importers can leave products without paying import taxes.
Following the announcement of Brazil’s heavy tariffs, many importers stored their products in these facilities while awaiting the final revision of the duties.
“(The decision to lift Brazilian tariffs) shows the effectiveness of trade negotiations,” Brazilian beef industry group ABIEC said, adding that it would continue to work to increase its share of the market.
Trump’s executive order on Thursday did not mention actions taken against Brazilian officials related to the trial and conviction of former President Jair Bolsonaro for plotting a coup to stay in power after losing the 2022 election.
Brazilian Supreme Court Judge Alexandre de Moraes and his wife were sanctioned through the Global Magnitsky Act, while the US visas of other judges and some ministers were canceled.
Brazilian President Luiz Inacio Lula da Silva said on Thursday that he was pleased with the removal of the 40% tariff.
(Reporting by Ismail Shakil and Marcelo Teixeira; additional reporting by Rodrigo Viga and Fabio Teixeira; Editing by Lincoln Feast)
