Trump signs order to remove tariffs from Brazilian beef, coffee

President Donald Trump on Thursday removed a 40% tariff on Brazilian food imports—including beef, coffee, cocoa and fruit—that had been imposed in July, making the change effective for U.S. arrivals on or after Nov. 13 and potentially requiring refunds for duties already collected; Brazil supplies about one-third of U.S. coffee and was a growing supplier of beef. The reversal, part of a broader rollback of recent agricultural tariffs that had pushed some retail prices (coffee up as much as 40% this year) higher and weighed on consumer sentiment, is expected to release stocks held in bonded warehouses and ease inflationary pressure on food, while the order left intact separate U.S. sanctions and visa restrictions on some Brazilian officials tied to the Bolsonaro prosecution.

Analysis

U.S. President Donald Trump issued an executive order removing the 40% tariffs on Brazilian food products — specifically beef, coffee, cocoa and fruits — that were imposed in July and made the change effective for U.S. arrivals on or after Nov. 13; the text says duties collected while the tariffs were active may require refunds. The tariffs had been imposed as punishment related to the prosecution of former president Jair Bolsonaro; the order did not address separate U.S. sanctions and visa revocations on Brazilian officials, which remain in place.

Brazil supplies roughly one-third of the coffee consumed in the United States and has become an important supplier of beef used for burgers; U.S. retail coffee prices rose as much as 40% this year due to the tariffs and weather-related production shortfalls. Commodities analyst Judith Ganes expects rapid movement of Brazilian coffee held in bonded warehouses to U.S. roasters, and Brazil’s ABIEC framed the reversal as commercially constructive for expanding market share.

The tariff rollback should exert near-term downward pressure on affected commodity prices and relieve some consumer inflationary pressure that has weighed on sentiment, but it also creates potential cash‑flow and accounting volatility from duty refunds and large inventory flows. Remaining political frictions tied to sanctions create an ongoing tail risk for trade relations and could reintroduce policy-driven volatility.

Key Decisions for Investors

• Consider increasing tactical exposure to U.S. coffee roasters, importers and food processors that source Brazilian coffee and beef as input-cost relief may support margins and pricing, monitor price moves before committing heavily
• Monitor bonded-warehouse releases and customs guidance closely over the coming weeks since rapid inventory flows and potential duty refunds could drive short-term price declines and volatility for importers
• Reduce directional long positions or tighten stops on coffee and imported beef if market prices quickly reflect the tariff reversal, while retaining exposure for potential weather-driven supply shocks that also influenced prices this year
• Track diplomatic and sanctions developments because the executive order left visa revocations and Global Magnitsky actions intact; renewed political escalation could reverse gains and reintroduce trade risk