Trump and Lula have smoothed over relations US President Donald Trump has removed a 40% tariff on more than 200 Brazilian agricultural and livestock products, including beef, vegetables, coffee, cocoa, and some ammonia-based fertilizers. The decision follows negotiations with Brazilian President Luiz Inácio Lula da Silva.
The tariffs had been part of a broader trade dispute. Trump initially imposed a 10% tariff on nearly all countries and later added a 40% penalty specifically on Brazil (bringing the total to 50% on some goods) in retaliation for the legal prosecution and 27-year prison sentence of former Brazilian President Jair Bolsonaro (a Trump ally) for attempting a coup after losing the 2022 election to Lula.
Last week, the general 10% tariff was already lifted on Brazilian agricultural goods.
After an accidental meeting at the UN General Assembly in September 2025, a phone call on October 6, and a face-to-face meeting on October 26 in Kuala Lumpur (Malaysia), the two leaders agreed to negotiate. Additionally, Brazil’s Foreign Minister Mauro Vieira and US Secretary of State Marco Rubio held talks on November 13,
The new measure is retroactive to November 13, 2025. The list also covers some fossil fuels, coal-derived chemicals, liquefied gases, wood pulp, and civil-aviation components.
The decision is especially significant for Brazil’s coffee and beef exporters. The United States is Brazil’s largest coffee buyer, accounting for about 16% of the country’s coffee exports.
Trump described the move as reflecting “initial progress” in ongoing negotiations with Brazil and cited recommendations from US officials that the extra tariffs were no longer justified on these agricultural imports. After months of tension, Trump and Lula have smoothed over relations, and Brazil has secured a major trade win with the full removal of punitive US tariffs on key exports.
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