US Coffee Tariffs Remain Too High, Says Top Supplier Brazil

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

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“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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