Trump Removes 40% Tariffs on Brazilian Food Imports, Aiming to Lower Grocery Prices Before Holidays

President Donald Trump signed an executive order on Thursday eliminating steep duties on a broad range of Brazilian agricultural products — including beef, coffee, sugar and orange juice — reversing tariffs imposed earlier this year amid tensions with Brazil's government and President Luiz Inácio Lula da Silva.

The White House said the decision follows ongoing negotiations with Brazil, including a call between Trump and President Lula on Oct. 6, and recommendations from administration officials. The order says the administration "considered the information and recommendations these officials have provided to me and the status of negotiations with the Government of Brazil" and determined it was "necessary and appropriate to modify the scope of products subject to the additional ad valorem rate of duty."

Key action: The order removes the remaining 40% surcharge that had been added on many Brazilian food products. That surcharge had been imposed in July and was layered on top of a 10% "reciprocal" duty introduced earlier in the year, producing combined levies of up to about 50% on some items.

The Brazil-specific rollback mirrors a Nov. 14 action that eliminated a 10% reciprocal tariff on more than 200 items worldwide, including fertilizer inputs, tropical fruits such as bananas and pineapples, coffee and several spices. The new order is backdated to Nov. 13, and the administration said it will refund tariffs collected on qualifying Brazilian agricultural imports since that date.

Why it matters

Brazil is a major U.S. supplier of foodstuffs: the United States imported roughly $42.3 billion in goods from Brazil in 2024, about $8 billion of which were food products. Those food imports include more than $2 billion in coffee and several billion more in meat, orange juice and sugar, plus smaller quantities of fruit, spices, vegetables, dairy and other agricultural items. Removing the tariffs is intended to reduce costs for American consumers, particularly ahead of the holiday season.

Administration framing

In an interview on Fox Business Network, White House official Howard Lutnick described the move as a reset after months of tariff threats. "It's time to wipe the slate clean," he said, adding that the administration plans to use its trade tools to focus on affordability and push prices lower for everyday goods.

The order follows earlier actions this year that raised tariffs amid diplomatic tensions and then scaled some back amid negotiations. The administration framed the rollback as part of a broader effort to address cost-of-living concerns after setbacks for the party in recent off-year elections.

Doug Palmer and Ari Hawkins contributed to this report.