Key Points
- Brazil is pushing for further U.S. tariff cuts on its coffee exports.
- A recent tariff reduction by President Trump had little impact on Brazil, which is the largest U.S. coffee supplier.
- Brazil is still facing a high 40% surcharge on its coffee exports.
- This puts Brazil at a disadvantage compared to competitors like Vietnam, which now has no tariffs.
Brazil will continue to fight for more tariff relief from the United States on its coffee exports, even after President Donald Trump’s recent decision to lower some levies. The Brazilian government says the reduction did little to help its coffee producers, who are the largest suppliers to the U.S.
“We’ll keep working to reduce it further,” Vice President Geraldo Alckmin told reporters on Saturday. “In the case of coffee, it makes no sense, 40% is still high.”
On Friday, Trump issued an order to reduce “reciprocal tariffs” on a variety of products, including coffee, beef, and bananas. The move was intended to lower grocery costs for American consumers as the administration faces pressure to cut prices on everyday goods.
However, Brazil is still facing an additional 40% surcharge on top of the reciprocal tariffs, meaning its coffee exports are still subject to extremely high levies. Alckmin pointed out that this puts Brazil at a major disadvantage compared to countries like Vietnam, whose coffee exports are now completely exempt from the tariffs.
Since July, Brazilian exports have been threatened with 50% tariffs. This includes a 10% reciprocal tariff and an additional 40% levy, intended to punish Brazil for the prosecution of its former president, Jair Bolsonaro, a known ally of Trump.
Brazil argues that these high tariffs are unfair and harmful to its coffee industry, a major part of its economy. The country will continue to press the U.S. for a more significant reduction in the levies to create a more level playing field for its exports.
