Reversal of US tariffs provides relief for Brazilian coffee.

The Brazilian Coffee Exporters Council (Cecafé) celebrated last week the decision by the United States government to reverse the 40% tariffs imposed on Brazilian coffee since August. The measure ends a period of trade instability and restores the product's competitiveness in the world's main consumer market.

The "tariff hike" had been imposed by President Donald Trump through an executive order signed on July 30, which raised taxes on various Brazilian products to 50%—including 10% pre-existing tariffs and an additional 40%. This reaction put Brazil at a disadvantage compared to competitors such as Vietnam, Indonesia, Colombia, and Costa Rica, which maintained lower taxes and expanded their market share in American blends.

In a statement, Cecafé described the reversal as "a historic victory for the entire production chain," highlighting the commitment of cooperatives, exporters, Brazilian authorities, and entities from the North American private sector.

Diplomatic and technical action

Since the announcement of the tariffs, Cecafé has been active on multiple negotiation fronts, both in Brazil and abroad. The organization joined efforts of the Interministerial Committee for Economic and Commercial Negotiation and Countermeasures, led by the Vice-President and Minister of MDIC, Geraldo Alckmin, providing data and impact analyses to the Brazilian government.

In the United States, the council submitted official letters to the Trump administration, the State Department, the USTR, and other agencies, highlighting the harm to American consumers and the importance of Brazilian coffee for the supply and quality of the domestic market. This defense was strengthened during the Section 301 investigation conducted by the USTR, with the joint participation of Cecafé and the National Coffee Association (NCA).

The agenda also included meetings at the US Embassy in Brasília and a business mission to Washington, organized by the National Confederation of Industry (CNI), which opened direct channels of dialogue with US authorities.

Risk of irreversible market loss.

According to Cecafé, if the tariffs were maintained, Brazil could face a structural loss of market share in the United States. With the change in blends by large roasters and consumers adapting to coffees from other origins, the country could take "years, decades, or even never" to recover its historical prominence in the United States.

High-level negotiations

Representatives from Cecafé accompanied official missions of the Brazilian government to Indonesia and Malaysia, bringing information about sustainability, traceability, and competitiveness of Brazilian coffee. The topic was also discussed directly by President Luiz Inácio Lula da Silva with President Donald Trump in diplomatic meetings held in October.

In November, new meetings with Vice President Geraldo Alckmin confirmed progress in bilateral negotiations and the possibility of additional exemptions for Brazilian products, including coffee.

Results and next steps

The final decision by the U.S. government, announced on November 20th, excluded Brazilian coffee from the additional tariff, restoring competitive conditions in the country. According to Cecafé, this result is the fruit of a collective effort between the government, the Brazilian private sector, and American partners.

The organization states that it will continue to work in the commercial defense of the export sector in the face of political, tax, logistical, and climatic challenges, strengthening the international presence of Brazilian coffee.