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Summary of diving:
- The United States will grant tariff exemptions to hundreds of Brazilian food and agricultural products under an executive order signed by President Donald Trump on Thursday.
- The exemptions largely mirror those imposed last week by the Trump administration to adjust global reciprocal tariffs, which cover 238 classifications and 11 categories of food and agricultural goods, according to a notice from U.S. Customs and Border Protection. The goods included in these exemptions are coffee, beef, spices and tropical fruits and juices.
- Similarly, the waivers are retroactive to Nov. 13, and any refunds will be handled by U.S. Customs and Border Protection through standard procedures.
Diving Insights:
Recent waivers by the Trump administration reduce the heavy tariff burden on some of Brazil’s most important exports, especially coffee.
According to the most recent data from the United States Department of Agriculture, Brazil accounts for 37% of the world’s annual coffee production. Goods tax has put more pressure on it Now increase the price, caused by reduced harvests amid climate change.
Beyond the US global reciprocating tariffs, which were revised last week, imports from Brazil have been subject to an additional 40 percent tax since Aug. 6 under a previous Trump executive order. In this order, Trump declared a national emergency and claimed that Brazil’s policies threaten the national security, foreign policy and economic interests of the United States.
Trump also condemned the prosecution of Jair Bolsonaro, the former president of Brazil, and the fines imposed on American companies by the country’s Supreme Court. These companies included X, formerly Twitter. Meta, owner of Facebook and Instagram; And Google
Trump issued waivers this week due to “initial progress” in trade talks with Brazil. Trump spoke by phone with Brazilian President Luiz Inacio Lula da Silva on Oct. 6 to begin negotiations that continue under Thursday’s executive order.
The Trump administration also launched a Section 301 investigation into Brazil’s trade practices in July. Ongoing research is assessing digital commerce, anti-corruption enforcement and ethanol market access.
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