On September 9th, President Trump of the United States declared on social media that starting from August 1st, all goods imported from Brazil would be subject to a 50% tariff. On the same day, Brazilian President Lula stated that the Brazilian economy could operate without trade with the United States and was also prepared to attempt resolving the issue through diplomatic, economic, and other means. The United States has a long-standing trade surplus with Brazil, making it the second-largest trading partner for Brazil. Analysts point out that imposing high tariffs on Brazilian goods will increase the cost of living for American consumers.
According to CNN, in 2024, Brazil exported goods worth up to $40.4 billion to the United States. Coffee, juice, frozen meat, among other daily foods consumed by Americans, as well as crude oil and basic chemical and energy products such as iron ore, are among the top ten export items.
Coffee is the most popular beverage among Americans. About one-third of coffee sold in the US comes from Brazil. More than half of orange juice sold in the US is also from Brazil.
The chairman of the Brazilian Coffee Export Committee, Marcelo Ferra: “76% of Americans drink coffee. Once tariffs are imposed, product prices will rise. This impact is bidirectional; it harms both producers and consumers.”
A Reuters analysis suggests that imposing new tariffs on Brazil could lead to an increase in the price of beef burgers, a food beloved by Americans. Some traders and analysts believe that currently, due to concerns over the infection of screwworm disease, the United States has suspended the import of live cattle from Mexico. Coupled with a decrease in domestic beef production, meat producers will become more dependent on importing beef from Brazil. Now, if new tariffs are imposed on Brazilian beef, the United States has limited alternatives available, which will inevitably lead to an increase in domestic beef prices and increase consumer burdens.