Despite indicating the United States’ willingness to negotiate, the removal of the 10% tariff for 238 products brings only minor relief to most sectors. According to most entities in the sectors affected by the tariff, the main obstacle remains: the additional 40% surcharge imposed at the end of July by the Donald Trump administration.
The measure directly benefits 80 items that Brazil sells to the United States, but the 40% surcharge continues to affect the majority of Brazilian products. In the entities’ assessment, Brazil will need to intensify diplomatic dialogue to seek the complete elimination of extra tariffs and restore competitive conditions in the North American market.
Only four products are now completely exempt from tariffs for the United States: three types of orange juice and Brazil nuts. The other 76 remain subject to the 40% tariff, including unroasted coffee, cuts of beef, fruits and vegetables.
Industry
Brazilian industrial entities assessed the measure as a positive gesture, but insufficient. According to an analysis by the National Confederation of Industry (CNI), the 80 items benefiting from the suspension of the 10% tariff represented US$4.6 billion in exports in 2024, around 11% of the total sent by Brazil to the USA.
The CNI states that maintaining the 40% surcharge keeps Brazil at a disadvantage compared to competitors who do not face the same barriers. The entity reinforces the urgency in advancing negotiations.
“It is very important to negotiate an agreement as soon as possible so that Brazilian products can compete again under better conditions”, declared the entity’s president, Ricardo Alban, in a statement.
The Federation of Industries of the State of Minas Gerais (Fiemg) also considers the cut to be a limited advance.
“It is an important step, but still insufficient”, said President Flávio Roscoe in a statement. The federation reinforces that important products in the state’s export basket, such as meat and coffee, remain affected.
Meat
Brazilian Association of Meat Exporting Industries (Abiec) had the most favorable reaction, highlighting the return of predictability to bilateral trade. In a statement, the association stated that the reduction “reinforces confidence in the technical dialogue between the two countries.”
“The measure reinforces confidence in the technical dialogue between the two countries and recognizes the importance of Brazilian meat, marked by quality, regularity and contribution to global food security”, informed the entity.
“The tariff reduction returns predictability to the sector and creates more suitable conditions for the smooth functioning of commerce”, concluded the Abiec statement.
According to the entity, tariffs on Brazilian beef fell from 76.4% to 66.4%, with the removal of the 10% global tariff. Before Donald Trump’s government, the United States taxed the product at 26.4%.
Coffee
The coffee sector remains cautious and awaits clarification on the scope of the reduction. In a note issued on Friday night (14)the Brazilian Coffee Exporters Council (Cecafé) considers additional technical analysis necessary. Producer of half of the planet’s Arabica coffee, Brazil supplies around a third of the beans to the United States.
In the Brazilian case, competition with other large coffee exporters represents the main obstacle. The US tariff on Brazilian beans fell from 50% to 40%, but the tariffs were zeroed for the Colombian product and practically zeroed for Vietnamese coffee.
“Coffee also reduced 10% [pontos percentuais]but there is a competitor who reduced 20% [pontos percentuais]. So this is the commitment that has to be made now to improve competitiveness”, said the vice-president and minister of Development, Industry, Commerce and Services, Geraldo Alckmin, in the early afternoon.
