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U.S. Rolls Back 10% Food Tariffs, Leaves Brazil’s 40% Surcharge Intact

Brazil remains under a 40% surcharge, prompting a renewed push for a near-term provisional deal.

Overview

  • President Donald Trump signed an order removing the 10% reciprocal levy on a wide list of foods, retroactive to November 13, with Customs instructed to refund duties already collected.
  • Brazil’s products still face a 40% punitive tariff, so many rates fall only from 50% to 40%, keeping key items like coffee and beef under heavy taxation.
  • The exemptions span roughly 200–238 items and apply globally, but a CNI analysis says they cover about 11% of Brazil’s exports by value, with Brazilian orange juice among the few now free of all extra duties.
  • Brazilian officials and trade groups welcomed the step as partial relief and warned that competitors such as Colombia and Vietnam secured deeper or zero tariffs on comparable goods.
  • Negotiations have intensified after Lula–Trump and VieiraRubio contacts, and officials have suggested a provisional arrangement could be reached in the coming weeks.