Despite Some Tariff Relief Elsewhere, Brazilian Coffee Will Continue To Be Tariffed At 40% – CoffeeTalk
Brazilian Vice President Geraldo Alckmin announced that despite President Donald Trump’s recent decision to eliminate certain import taxes, Brazilian goods exported to the U.S., such as coffee, beef, and tropical fruits, will still incur a substantial 40% tariff. This follows Trump’s earlier measures, including a 10% tariff imposed on Brazil in July, which was justified partly by the political trial of former President Jair Bolsonaro, resulting in his 27-year prison sentence for attempted coup. While products like orange juice are exempt from this tariff, Alckmin emphasized that the high tariff on Brazilian key exports remains a significant distortion in trade relations.
Alckmin described Trump’s recent tariff changes as a “positive” move, noting an increase in tariff-free Brazilian goods entering the U.S. from 23% to 26%. Reflecting on the implications of Trump’s tariffs, which have historically strained U.S.-Brazil relations, Alckmin acknowledged that while recent diplomatic engagements have improved, this abrupt political decision has created friction as Brazil has faced a growing trade deficit with the U.S. Notably, after a meeting in Malaysia between Trump and Brazilian President Luiz Inácio Lula da Silva, there appears to be optimism regarding a potential trade agreement.
The economic impact of these tariffs has been a contentious topic within U.S. politics, with rising beef prices attracting Democratic criticism. On the Brazilian side, industry stakeholders, particularly from the coffee sector, are poised to monitor the evolving tariff landscape closely, emphasizing commitments to legal stability and competitiveness in the market amid these ongoing trade discussions.
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Source: Coffee Talk
