'We're back in the game': sectors of agriculture that were still suffering from a tariff hike of up to 50% expect to resume sales to the USA
'We're back in the game,' says the president of the Brazilian Association of Soluble Coffee Industry as US tariffs on nearly half of Brazilian products are lifted.
The Brazilian agricultural sector, represented by figures such as Aguinaldo Lima from the Association of Soluble Coffee Industry, is celebrating a critical moment as the US Supreme Court has rolled back tariffs on various Brazilian exports, effective from the 24th. This decision particularly affects products that have been heavily taxed, such as soluble coffee, honey, fruits, and seafood, which were subject to tariffs ranging from 10% to 40% while essential products like beef and traditional coffee had already been exempt. The lifting of these tariffs marks a significant shift for industries that had suffered from reduced sales in the US due to these financial barriers.
Despite the overall decrease in tariffs, the story takes a turn with President Donald Trump's announcement of a new 10% global tariff, subsequently raised to 15%, which complicates the landscape for Brazilian exports. The implications of these tariffs are significant; they create uncertainty but also illustrate the ongoing competitiveness of Brazilian products against those from other regions that are not as heavily taxed. As explained by industry leaders like Renato Azevedo, who heads the Association of Honey Exporters, in comparison to other competing countries, the level of taxation on Brazilian honey was disproportionately high, making it less appealing in the US market.
As sectors impacted by these tariffs begin to recover and plan for renewed exports to the US, the resilience of the Brazilian agricultural industry is on display. Their strategy to navigate these turbulent waters indicates a hopeful outlook for the future of trade between Brazil and the United States, although the newly announced global tariffs by the Trump administration could still pose challenges. The tone among Brazilian exporters remains optimistic, as they prepare to capitalize on the opportunities that lie ahead with the lifting of US tariffs on their products.