Trump Lifts Tariffs on Brazilian Ag Imports to Ease Food Costs

Removing the 40% duty sharply lowers U.S. beef import costs on beef, coffee, fertilizer and fruit, and restores Brazil’s competitiveness during a period of tight domestic supply.

WASHINGTON, D.C. (RFD-TV) — U.S. beef buyers will see lower import costs after President Donald Trump signed an executive order removing the extra 40 percent tariff he previously imposed on Brazilian agricultural products earlier this year. The change takes effect retroactively to November 13. It reflects early progress in trade discussions between the White House and Brazilian President Lula, ending months of elevated duties that added to already tight protein supplies.

The order restores lower tariff rates on key products, including fresh and frozen beef, coffee, fruit, fertilizer, and multiple categories of beef offal. These items faced one of the highest penalty rates under Trump’s July trade action, which initially imposed additional duties over concerns tied to Brazil’s domestic political actions. Importers will now receive refunds where applicable, and the administration has posted a revised tariff annex.

For the beef sector, the rollback is significant. Brazil is the world’s largest beef exporter and a major supplier of lean manufacturing beef used in U.S. processing. Regionally, Australia had been filling part of the gap with low-tariff access and strong export volumes, supported by robust U.S. demand for lean high-protein meat. The tariff revision is expected to rebalance competitiveness among major suppliers.

Looking ahead, the administration says negotiations with Brazil will continue, and further tariff adjustments remain possible depending on diplomatic progress and market conditions.

Farm-Level Takeaway: Removing the 40% duty sharply lowers U.S. beef import costs and restores Brazil’s competitiveness during a period of tight domestic supply.
Tony St. James, RFD-TV Markets Specialist
Related Stories
“Farmers for Free Trade” warns that disaster is brewing as President Trump’s trade policy is causing farm input costs to rise even more.
NCBA CEO Colin Woodall says more conversations need to occur with stakeholders present surrounding President Trump’s proposal to lower consumer beef prices with Argentinian imports.
Lawmakers are pressing for answers on how Washington’s “managed trade” approach — keeping leverage through long-term tariffs — will affect farmers, global markets, and future export opportunities.
Beef industry groups seem to agree — market-based pricing, not federal intervention, best supports rancher livelihoods and long-term beef supply stability.
Cattle groups say additional imports would offer little relief for consumers but could erode rancher confidence as the industry begins to rebuild herds.
The government shutdown has touched nearly every sector of the ag industry since it began, and now impacts are spilling over into dairy.
With China halting U.S. soybean purchases and talks tied to broader strategic issues, growers face renewed export uncertainty.
Talks highlight the widening role of agriculture in U.S.–India trade policy, though neither side appears ready for major concessions before tariff issues and oil imports are resolved.
Expect firm calf and fed-cattle prices — pair selective heifer retention with prudent hedging and liquidity to bridge rebuilding costs.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Sen. Roger Marshall discusses the Senate’s unanimous passage of the Whole Milk for Healthy Kids Act and what expanded milk options could mean for students and dairy farmers. Industry groups say it is a win for student nutrition and dairy producers.
Lower tariff rates and new rail-service proposals may improve corn movement efficiency during early-season marketing.
Crop producers face tightening credit and lower incomes, while strong cattle markets continue to stabilize finances in livestock-heavy regions.
Supplemental Disaster Relief Program Stage Two will disburse around $16 billion, approved by Congress last year. Sign-ups begin Monday, and producers have until April to return applications.
Early Cattle-on-Feed estimates point to slightly tighter cattle supplies, reinforcing the need to monitor prices and timing for winter marketing.
Row crop losses in 2025 are outpacing last year. With no disaster aid yet approved, many operations face a tough financial bridge to 2026 even as Farm Bill improvements remain a year away.