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US coffee tariffs remain too high, says top supplier Brazil

Raphael Almeida, Augusta Saraiva, Bloomberg News on

Published in News & Features

Brazil will keep pushing to get further tariff relief from the U.S. on coffee exports after U.S. President Donald Trump’s decision to lower levies barely impacted its largest supplier.

“We’ll keep working to reduce it further,” Vice President Geraldo Alckmin told reporters in Brasilia on Saturday. “In the case of coffee, it makes no sense, 40% is still high.”

Trump issued an order on Friday reducing reciprocal tariffs on products including coffee, but also beef, tomatoes and bananas, a move aimed at lowering costs on groceries as the administration faces pressure from voters to cut prices on everyday goods.

 

Brazil, which is facing an additional 40% surcharge on top of the reciprocal tariffs, continues to see exorbitant levies on exports. That puts it in a disadvantage against countries like Vietnam, whose coffee exports are now fully exempted, Alckmin said.

Since July, Brazilian exports have faced the prospect of 50% tariffs, comprised of a 10% reciprocal tariff and additional 40% levy intended to punish the country over the prosecution of former Brazilian president and Trump ally Jair Bolsonaro.


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