Brazil Urges U.S. to Exempt Coffee from New Tariffs
Brasília / São Paulo – August 1, 2025 (Qahwa World) – The Brazilian government is urging the United States to exempt coffee from the newly imposed tariffs announced by the administration of President Donald Trump, which now affect several key Brazilian exports, including coffee and beef.
In a televised interview, Brazil’s Vice President Geraldo Alckmin said that the new 50% tariff on coffee exports would hurt both countries, emphasizing that the U.S. does not produce coffee and that the cost will ultimately be borne by American consumers.
“We will work to convince the U.S. to reduce the tariff on coffee,” Alckmin said during an appearance on TV Globo’s Mais Você morning show. “This is a lose-lose scenario.”
Official estimates show that 35.9% of Brazil’s exports to the U.S. by value are now subject to the new 50% tariff. Another 44.6% of exports remain under the pre-existing 10% tariff, while 19.5% are affected by global U.S. import tariffs ranging from 25% to 50%.
The U.S. administration claims the tariff decision is a response to what Trump has called a “witch hunt” targeting former Brazilian President Jair Bolsonaro, who is currently on trial for allegedly plotting a coup after losing the 2022 election. While some sectors like aviation, energy, and orange juice were spared from the sharp increases, coffee was not exempted.
In response, the Brazilian government is preparing an economic contingency plan to support affected industries. The plan will include financial aid, credit facilities, and tax relief, with the aim of protecting jobs and ensuring production stability.
Alckmin also noted that some of the goods initially destined for the U.S. market could be redirected to the domestic market, helping to ease inflationary pressures at home. He added that some of the support measures may be excluded from the government’s primary fiscal target, as Brazil works to eliminate its budget deficit in 2025.
Finance Minister Fernando Haddad confirmed that Brazil would challenge the U.S. decision through legal avenues—either within U.S. jurisdiction or via international bodies—stating that several sectors were unfairly and disproportionately impacted.
“We see room for corrections,” Haddad said. “Some sectors were excessively burdened, and this must be reviewed urgently.”
