Brazilian coffee may be spared U.S. tariffs under new trade deals

In an interview on CNBC’s Squawk Box, Mr. Lutnick said: “If you grow something and we don’t grow it, that can come in for zero, so if we do a deal with a country that grows mangos, pineapple, then they can come in without a tariff, because coffee and cocoa will be other examples of natural resources.”

Of the four products mentioned by the U.S. official—coffee, cocoa, mango, and pineapple—coffee could offer Brazil the greatest advantage. The country was the top coffee supplier to the U.S. last year. Of the $6.3 billion imported by Americans, 30% came from Brazil. Colombia ranked second with a 21% share, and Guatemala third with 7%.

For Brazil, the U.S. remained the top destination for Brazilian coffee in 2024, with $1.9 billion in sales, ahead of Germany ($1.8 billion) and Belgium ($1.1 billion). Americans have never spent so much on Brazilian unroasted coffee as in 2024, but the 17% share of Brazil’s total coffee exports was the second lowest in the past ten years, above only the 15% seen in 2023.

Coffee was the third most exported Brazilian product to the U.S. last year, trailing only petroleum ($5.8 billion) and semi-manufactured non-alloy iron or steel products ($2.8 billion).

According to a source in the coffee export industry, there is still a great deal of uncertainty. And while Mr. Lutnick’s remarks were an important signal for the sector, a potential exemption might not apply automatically to all countries or products and could also depend on bilateral negotiations.

Another product where Brazil plays a relevant role in sales to the U.S. is mango, which accounts for about 12% of American imports—making Brazil the fourth-largest supplier—although with much smaller trade values. Brazilian data shows the country exported $46 million in mangoes to the U.S. last year, ranking 101st in overall exports to the American market.

Brazil did not rank among the top 25 suppliers of cocoa beans or fresh pineapple to the U.S. last year.

Mr. Lutnick said all tariffs will be finalized by Friday, the deadline set by President Donald Trump for countries to reach trade agreements with the U.S.

On Monday, the U.S. president said that countries that have not received letters from the White House would be subject to a universal tariff of 15% to 20%. Mr. Lutnick reinforced that message on Tuesday: “But for the rest of the world, we’re going to have things done by Friday. August 1 is the date that we’re setting all these rates.”

The Brazilian government was notified by the White House on July 9 that it would face a 50% tariff: the highest rate announced in any of the letters sent by Mr. Trump. In the letter, the U.S. cited alleged “unfair trade practices” by Brazil and a supposed “witch hunt” against former President Jair Bolsonaro, who is on trial before the Supreme Federal Court for attempting a coup d’état.

The tone of Mr. Trump’s communication surprised Brazilian officials. Diplomatic officials noted that the president explicitly mixed political issues involving Mr. Bolsonaro with technical matters of bilateral trade—a move considered unprecedented in the 200-year history of relations between the two countries.

Last week, Mr. Trump said some countries received 50% tariffs because they had not “gotten along well” with the U.S. government. He did not mention Brazil by name, but it was the only country among the 25 letters sent by the Republican leader that received the 50% rate.

Commenting on ongoing negotiations with other countries, Mr. Lutnick said U.S. and European Union officials are still discussing tariffs on steel, aluminum, and digital services, continuing talks aimed at advancing the agreement announced Sunday by Mr. Trump and European Commission President Ursula von der Leyen.