Trump suddenly gave in to the sudden lifting of tariffs
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According to CCTV: On November 21, local time, Brazilian Vice President Alckmin said that the United States announced the cancellation of the 40% additional tariff on some categories of Brazilian goods such as coffee, meat, and fruits, but about 22% of exports to the United States continued to be affected.
Alckmin emphasized that the United States' relaxation of tariffs on some Brazilian export products is the "biggest progress" in the current bilateral negotiations. The two sides will keep the negotiations advancing, and Brazil remains optimistic about this.
On November 20, local time, the White House announced that US President Trump signed an executive order to modify the scope of tariffs on goods imported from Brazil.
The 40% ad valorem tariff on some goods remains unchanged, but in view of the progress in negotiations, additional ad valorem tariffs will be eliminated on specific Brazilian agricultural products entering the United States after 0:00 on November 13, Eastern Time.
The White House said Trump's executive order also eliminated a 40% tariff on imported aircraft parts from Brazil.
The White House said the move was aimed at balancing national security concerns and promoting the development of trade relations with Pakistan.
The tariff decision announced by the White House affects commodities such as coffee, fruit and beef. According to US media reports, Brazil is the main source of food imports to the United States, exporting beef, coffee, juice, sugar and other foods to the United States. In 2024, the United States imported .3 billion worth of goods from Brazil, including about billion worth of food.
This is the second major adjustment to U.S. tariff policy in the past week. The White House said last week that Trump would roll back some global tariffs originally announced in April.
On November 14th, Eastern Time, Trump signed an executive order to no longer impose so-called "reciprocal tariffs" on some agricultural products starting from November 13th, Eastern Time. The White House stated at the time that the adjustment to the scope of application of "reciprocal tariffs" was mainly based on factors such as the progress of negotiations between the United States and its trading partners, as well as the current domestic demand and production capacity for certain products in the United States.
Regarding the U.S. government’s tariff measures last week, Brazil said at the time that this adjustment would not affect the punitive tariffs announced by Trump in July.
Thursday's decision harmonizes Trump's plans to ensure that neither April nor July tariffs apply to certain products.
Trump and Brazilian President Lula have been negotiating on trade issues, which could lead to further reductions in tariffs in the future.
Trump said he made the decision based on the "advice" of officials and the progress in trade talks between the two countries.
Politico and other U.S. media commented that Trump’s move was in response to voters’ concerns and to lower U.S. food prices. The British "Financial Times" mentioned that this was a major victory for Lula, who had previously toughened Trump on the tariff issue without making any concessions.
In recent times, the rise in the price of coffee and other food has attracted the attention of the Trump administration. The US Republican Party performed poorly in local elections earlier this month. Democrat Mamdani, who campaigned on a campaign platform of focusing on the cost of living, was elected mayor of New York.
U.S. Commerce Secretary Lutnick said in an interview a few days ago that Trump is canceling food tariffs in order to "start everything again." He said the U.S. government will focus on "affordability" and focus on "the little things that directly impact the wallets of the American people," including lowering prices before Christmas.
Thiago de Aragon, CEO of Arko International, a public affairs company headquartered in Washington, pointed out that the Trump administration’s latest move is mainly due to domestic factors in the United States. It is worth noting that Brazil has not made any concessions.
On November 20, local time, Lula issued a video statement on the social media X platform, stating that this was a "victory of dialogue, diplomacy and common sense."
Lula mentioned that his candid dialogue with Trump and the work carried out by the negotiating teams of both parties jointly contributed to important progress.
"This is a step in the right direction, but we need to go further," Lula said. "We will continue our dialogue with Trump guided by the defense of sovereignty and the interests of Brazilian workers, agriculture and industry."
