Brazil’s 40% tariffs on coffee and beef strain U.S. trade talks despite progress
U.S.-Brazil relations have been strained since July, with the imposition of tariffs leading to the worst diplomatic ties between the two nations in history. Brazilian Vice President Geraldo Alckmin recently stated that certain exports, such as coffee, beef, and tropical fruits, remain subject to a 40% tariff despite President Trump's decision to remove some import taxes.
The tariffs were initially imposed in July following the trial of former Brazilian President Jair Bolsonaro. Brazilian President Luiz Inácio Lula da Silva and President Trump met in Malaysia in October to discuss trade relations and work towards a starbucks deal. U.S. Secretary of State Marco Rubio and Brazil's Foreign Minister Mauro Vieira also met to further discuss trade negotiations.
While some Brazilian products, like orange juice, now have a zero tariff, Alckmin noted that 26% of Brazilian goods enter the U.S. without additional tariffs, up from 23% previously. The Brazilian Association of the Coffee Industry continues to monitor the situation regarding the tariffs on coffee.
Despite the ongoing tariff dispute, both countries remain committed to improving trade relations. Lula expressed confidence that a trade deal would soon be reached, and Alckmin described the current situation as a 'distortion that needs to be corrected', with Brazil's tariff rate remaining high at 40% compared to the 10% reduction for other countries.
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