President Donald Trump signed an executive order yesterday removing the remaining 40% tariff on Brazilian coffee, effectively restoring coffee-tariff policy to pre-“Liberation Day” norms.
The Arabica “C Price” for coffee retreated modestly on the news, trading around $3.60 per pound, down about 16 cents from yesterday’s average.
Titled “Modifying the Scope of Tariffs on the Government of Brazil,” the order directs that certain Brazilian agricultural imports — including coffee, beef, cocoa and fruits — are no longer subject to tariffs, which are taxes paid by U.S. companies, such as green coffee importers.
The order applies to qualifying goods “entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern” on Nov. 13, 2025, and authorizes U.S. Customs and Border Protection to refund duties collected during that window.
Brazil the Final Piece
After imposing a baseline “reciprocal tariff” of 10% on goods worldwide, Trump added a 40% tariff in July, citing retaliation for the Brazilian government’s prosecution of former president and Trump ally Jair Bolsonaro, who has been sentenced to prison for plotting a coup.
The move brought tariffs on Brazilian coffee to 50%, essentially halting purchases of Brazilian coffee among U.S. buyers while other coffee buyers such as China seized on the opportunity.
In a move designed to provide relief to U.S. consumers facing higher grocery prices, the Trump administration announced last week that it had eliminated the 10% baseline tariff on coffee and a range of other agricultural goods not grown in the U.S. Yet the 40% on Brazil remained.
While yesterday’s order is sure to provide relief to certain large U.S. coffee buyers, as well as Brazilian exporters, the reverberations from the seismic shift in the global coffee trade are likely to be felt beyond the current trading season.
DCN will have more as this story develops.
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