Trump Exempts Brazilian Coffee, Beef from Tariffs to Combat Rising Grocery Prices

November 20, 2025 – President Donald Trump has signed an executive order exempting key Brazilian imports, including coffee and beef, from previously imposed tariffs, marking a significant rollback aimed at easing food costs for American consumers.

The decision removes a 40% additional tariff on Brazilian agricultural products that was part of broader trade measures introduced earlier in 2025. This exemption, effective retroactively from November 13, 2025, also covers other goods such as fruit juices, sugar, bananas, pineapples, cocoa, and spices.

Background on Trump-Brazil Tariffs 2025

In July 2025, the Trump administration imposed steep tariffs on Brazilian goods – including a 40% levy stacked on existing 10% reciprocal duties – in response to Brazil’s prosecution of former President Jair Bolsonaro and ongoing trade imbalances. The move escalated tensions with Brazilian President Luiz Inácio Lula da Silva and contributed to higher prices for imported staples in the U.S.

However, facing mounting inflation concerns and consumer backlash over grocery bills, the White House has shifted course. A separate action last week already reduced Brazil’s baseline 10% reciprocal tariffs on many food items.

Key Details of the Brazil Tariff Exemptions

  • Exempted Products: Brazilian beef, coffee, bananas, orange juice, tropical fruits, spices (e.g., cinnamon, coriander), cocoa, sugar, and fertilizer components.
  • Effective Date: Applies to imports arriving on or after November 13, 2025.
  • Refunds: Importers who paid the 40% duties since mid-November may be eligible for refunds.
  • Broader Context: This follows similar exemptions granted to countries like Argentina, Guatemala, El Salvador, and Ecuador through new reciprocal trade agreements.

Commerce Secretary Howard Lutnick emphasized the focus on affordability, stating in a Fox Business interview: “The president said, ‘It’s been six months. It’s time. Let’s just wipe the slate clean… Let’s focus on affordability.’ … So what you’re going to watch is the president’s going to focus on the small things that touch the Americans’ pocketbook, and he’s going to bring them all down… so that by Christmas, the prices in America are lower and lower.”

FILE – Coffee beans are prepared at a farm in Braganca Paulista, Brazil, Monday, Aug. 4, 2025. (AP Photo/Andre Penner, File)

Impact on U.S. Consumers and Food Prices

The exemptions target products where Brazil is a major supplier and domestic alternatives are limited, helping to stabilize prices amid recent surges:

  • Coffee prices had risen sharply due to tariff pressures.
  • Beef and other proteins faced similar cost increases.

Analysts expect this move to provide quick relief at grocery stores, especially during the holiday season, as part of Trump’s broader strategy to prioritize American household budgets over prolonged trade disputes.

The White House cited progress in negotiations with Brazil, including an October call between Trump and Lula, alongside recommendations from administration officials as factors in the decision.

This development represents the latest adjustment in Trump’s 2025 trade policy, balancing enforcement with economic realities for U.S. families searching for lower Brazil coffee tariffs, Trump beef tariff exemptions, and relief from 2025 food price inflation.