Key farm goods face steep 50 percent tariffs
The United States has imposed 50 percent tariffs on Brazilian imports effective August 6, affecting several agricultural products and reshaping trade between the two nations. While nearly 700 exemptions announced on July 31 spared goods like orange juice, nuts, cellulose, and certain fertilizers, many farm products remain subject to the full tariff.
Brazil’s agricultural exports, worth US$164 billion in 2024, rely heavily on global markets, with the US accounting for 7% of total sales. Coffee, beef, tropical fruits, seafood, cocoa, and sugar cane are among the items still impacted. Coffee is Brazil’s top agricultural export to the US, meeting 34% of American consumption. Tariffs could raise prices for US consumers and add to inflation, prompting calls from industry groups to remove coffee from the list.
In beef, the US is Brazil’s second-largest market after China. Brazilian beef shipments to the US grew significantly in 2024 but have dropped sharply since earlier tariffs were introduced. The 50% rate could cost Brazil’s beef sector at least US$1 billion in the year’s second half. Replacing US demand will be difficult due to volume and quality requirements.
Brazil is now exploring new markets, with China approving 183 more Brazilian coffee exporters in July. However, shifting trade will take time because of regulatory and logistical challenges. For the US, finding alternative beef suppliers like Australia or Argentina could lead to higher consumer prices.
The Brazilian government has brought the case to the World Trade Organization, signaling a deeper trade dispute. If unresolved, these measures may leave lasting effects on agricultural supply chains and market relationships.
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