Brazil Pushes Back on U.S. 50% Tariff Impacting Coffee, Beef Exports

Brazil estimates that 35.9% of its exports to the United States will face a steep 50% tariff under a new executive order from President Donald Trump’s administration, Vice President Geraldo Alckmin said Thursday. The remaining shipments will see either the existing 10% tariff on 44.6% of goods or global tariffs of 25% to 50% on 19.5%.

The new trade measures exclude key sectors such as aircraft, energy, and orange juice but impose heavy duties on major Brazilian exports like coffee and beef. Alckmin criticized the tariffs, warning that U.S. consumers will face higher prices and describing the move as a “lose-lose situation.” He confirmed the government’s efforts to negotiate tariff reductions, particularly on coffee, and announced contingency plans to protect domestic industries, including financial, credit, and tax support. Some measures may be exempt from Brazil’s primary fiscal target as the country seeks to balance its budget this year.

The tariffs come amid heightened tensions, with Trump justifying the move as retaliation for what he called a “witch hunt” against former Brazilian President Jair Bolsonaro, currently on trial for alleged coup plotting after his 2022 election defeat.

Finance Minister Fernando Haddad said Brazil will challenge the U.S. decision through international and domestic channels, seeking adjustments for sectors hit hardest by the higher duties. He expressed confidence that some tariffs could be corrected, signaling potential relief for exporters if negotiations succeed.

Brazil, Latin America’s largest economy, is bracing for inflationary effects but expects domestic markets to absorb surplus goods diverted from the U.S. as officials scramble to safeguard jobs and stabilize trade flows amid escalating economic tensions with Washington.