US President Eases Tariffs on Brazilian Imports, Grocery Prices Expected to Drop

Post by : Bianca Suleiman

In a significant move to alleviate the financial strain on consumers, President Donald Trump has expanded tariff exemptions for various food products from Brazil, potentially leading to reduced grocery expenses for Americans facing escalating prices.

The new executive order, signed on Thursday, takes retroactive effect from November 13 and eliminates many items from the 40% import tariff that Trump instituted earlier in the year. The previous exemption of 10%, granted last week, failed to address the higher punitive tariff, a part of Trump’s strategy to exert pressure on Brazil regarding legal actions against former President Jair Bolsonaro.

Brazil, the foremost global exporter of coffee and beef, has experienced a decrease in shipments to the US as a result of these tariffs, contributing to escalating prices and ongoing product shortages. Key items like coffee, orange juice, and beef are anticipated to gain the most from this exemption, potentially alleviating the financial burdens on American households.

This tariff reduction marks a notable achievement for Brazilian President Luiz Inacio Lula da Silva, who has persistently advocated for the removal of US tariffs. High-level talks between the two nations have resumed following a brief meeting between Trump and Lula in New York in September, accompanied by discussions in Malaysia the following month where Lula called for a “definitive solution” on tariff issues.

In contrast to many other nations targeted by Trump’s trade policies, Brazil typically runs a trade deficit with the US, a fact that Lula often highlights. This policy shift also indicates an increased awareness in Washington regarding the adverse effects of tariffs on consumer prices, particularly in vital food sectors.

This change arrives shortly after elections where rising living costs were a significant concern, suggesting a deliberate strategy to address affordability for voters. Economists assert that reducing import tariffs on products that are not sufficiently available domestically can help ease inflationary pressures while still adhering to the broader trade agenda.

With the new exemptions activated, American consumers may soon experience some relief at checkout counters for Brazilian coffee, beef, and orange juice, marking a rare reversal in Trump’s extensive tariff framework.