The import tariff of 50% of the United States on Brazilian products, as announced by President Donald Trump on July 9, entered into force on force. Although almost 700 items have been included in an exception list released last week by the White House, about half of Brazilian exports to the United States will be affected by tariffs.
The Brazilian government considers that there is still room for negotiation. Finance Minister Fernando Haddad hopes to meet with American Treasury Secretary Scott Bessent next week. But the space to include more products on the list of exceptions may have been less after the arrest of former Brazilian President Jair Bolsonaro.
Shortly after Bolsonaro’s arrest last Monday, the US government reacted publicly on the same day. In a post on social networks, the state department office accused the president of the Supreme Court (STF), Alexandre de Moraes, of violating human rights. In the letter announced the 50%surcharge in early July, Trump linked his decision to STF decisions involving Bolsonaro.
Take your business to the next level with the help of the country’s leading entrepreneurs!
At least half of agricultural exports to the United States will be overcrowded from Wednesday, according to data from the Ministry of Agriculture-the calculation disregards the export of forest products.
See how the tariff affects the main products of the US exporting agenda to the US:
CAFÉ – From today, Brazilian coffee starts paying a 50% rate to enter the United States. The absence of coffee from the exception list surprised Brazilian producers due to high dependence from the US Brazilian coffee. About a third of all the coffee consumed in the US comes from Brazil, which guarantees the American blend the taste that Americans are used to.
Continues after advertising
Surely consumers will feel in their pockets, but Brazilian exporters should also be impacted, at least in the short term. As there is a shortage of arabica coffee worldwide – Brazil represents over 40% of global production – production will find other destinations earlier or later.
China, where coffee consumption has shown strong growth in recent years, has enabled 183 exporters to access the Chinese market after the announcement of Trump’s tariff. It remains to be seen whether the volumes-and especially the amounts of imports-will be similar to those paid by the Americans.
The strategy of Brazilian exporters has been to work with the National Coffee Association to show the US government that Brazilian coffee does not take advantage of Americans, but adds.
Continues after advertising
According to a study by the American entity, which represents US roosters, every $ 1 imported from coffee generates $ 43 in the American economy. Coffee generates 2.2 million jobs and represents 1.2% of US GDP, according to the same study.
Bovine meat -With the 50% that start to be worth today, the Brazilian beef will pay a 76.5% rate to access the US market, which practically makes exports impossible. According to the Association of Beef Exporters (ABIEC), volumes that should be sent to the US in the second semester are equivalent to $ 1 billion.
The expectation of the entity is that shipments to the US bend this year, to 400 thousand tons, consolidating the country of Trump as the second main importer of Brazilian beef, behind only China.
Continues after advertising
Last week, JBS Global CEO, Gilberto Tomazoni, said during the, who still believes that the Brazilian government could advance in negotiations with Trump. Like the coffee industry, Brazil’s meat exporters continue to work on the lobby to reverse the measure.
Meanwhile, the pressure of food service companies grows for Trump to go back. Last week, the US National Association of Restaurants sent a letter to the US government that claims to be “extremely concerned” about the new tariffs, according to Reuters.
ORANGE JUICE – Brazil’s concentrated and frozen orange juice has entered Trump’s list of exceptions. With this, the product will be taxed by only 10%, as was announced in April. The White House gave way to the pressure of importers, who argued that there is no substitute for orange juice in Brazil, which has a 90% stake in world trade. There was a risk, therefore, of shortages and even unemployment in the United States.
Continues after advertising
Fish and seafood – More than half of Brazilian fish and seafood exports are intended for the United States, according to the Ministry of Agriculture. At least 58 containers – the equivalent of over 1,000 tons of fish – lost their buyers after the announcement of tariffs, according to Abipesca, an association that represents exporters of the sector. Tilapia and lobster are among the most threatened products. Producers requested government support with the entry into force of the tariffs.
Fruits – Affected by surcharge, mango and grapes are the main fruits exported to the United States, with a stake of about 50% of the total. Producers say there is a risk that fruits rot without the possibility of replacing the United States easily. They have also requested government support.
