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Brazil Beef Spared From New Tariffs
Chris Clayton 7/16 7:58 AM
OMAHA (DTN) -- The Trump administration announced 25% tariffs on a range of Brazilian products, including ethanol, but the U.S. currently imports virtually no Brazilian ethanol, while agricultural products such as beef and coffee were exempted from the new tariff action handed down late Wednesday. The U.S. Trade Representative's Office (USTR) announced new tariffs "on all goods from Brazil" starting next week under Section 301 of the Trade Act of 1974, while at the same time citing exemptions for "certain goods from Brazil." The tariffs will go into effect on July 22. "President Lula and his government have not negotiated with the U.S. in good faith," Secretary of State Marco Rubio wrote on X. "His economic policies are bad for Americans and bad for Brazilians. For the past year, Lula has put his own ego ahead of making a deal for the welfare of the Brazilian people, and these tariffs are the price for that." Among the actions USTR cited were Brazil's restrictions on U.S. ethanol market access and illegal deforestation, arguing the country's actions "are unreasonable and burden or restrict commerce of American farmers, workers, innovators, and exporters." The action comes after USTR held hearings earlier this month on Brazil. BEEF EXCLUDED FROM TARIFFS But industries cited by Brazil's critics as being responsible for illegal deforestation, such as cattle ranching, were largely unharmed by the Trump administration's announcement. Beef, which is being imported in record numbers from Brazil, was among the products excluded from the tariffs, as President Trump has increased beef imports from South America as one strategy to lower American grocery prices. Through May, Brazil exported roughly $1.175 billion in beef to the U.S., up 20% from the same five months of last year. Brazil exported a record $1.66 billion in beef to the U.S. in 2025. U.S. cattlemen's groups have been united in calling for punitive tariffs on Brazilian beef, citing deforestation and documented reports of forced labor as reasons for imposing tariffs. "American cattle producers are not looking for a way out. They are fighting for every possible reason to stay in. But if the United States keeps the door open to cheap beef from countries that play below the law and tolerate forced labor, we will make that decision for them. We will push them out of an industry they love, not because they failed, but because they refused to cheat," said Jenna Stanton, director of policy and public affairs for the U.S. Cattlemen's Association during the USTR hearing on July 8. NCBA also requested USTR remove all bovine products from the list of tariff exemptions and use the opportunity to hold Brazil accountable. Bill Bullard, CEO of R-CALF USA, made a similar argument. "Exempting the principal derivative of cattle from the proposed 25% tariff action would substantively undermine the Trade Representative's objective of eliminating the improper acts, policies, or practices contributing to illegal deforestation in Brazil," said Bill Bullard, CEO of R-CALF USA. ALMOST NO ETHANOL IMPORTS FROM BRAZIL Brazilian ethanol will face a 25% tariff on top of another 12.5% in tariffs the U.S. already imposes, making the tariff as high as 37.5% on Brazilian ethanol. Left unsaid is that Brazil has effectively stopped exporting ethanol to the U.S. After exporting roughly 154 million gallons of ethanol to the U.S. in 2020, Brazil's ethanol exports to the U.S. fell to virtually none in 2024 and 2025, according to the U.S. Energy Information Administration. Still, Growth Energy praised the actions as the U.S. tries to find a policy that will get the Brazilian government to lower its barriers to U.S. ethanol. "For nearly a decade, Brazil has unfairly blocked U.S. ethanol imports, while their own producers enjoy complete and unfettered access to American markets," said Growth Energy CEO Emily Skor. "That imbalance has caused extraordinary harm to U.S. farmers and ethanol producers, and today's decision marks an important step toward repairing the damage. We aren't looking for preferential treatment -- simply a return to the mutually beneficial trade that once defined the relationship between the world's largest biofuel producers." The U.S. exported nearly 50 million gallons of ethanol to Brazil in 2025, which was up nearly 79% from 2024, but remained about 73% below the 2020 volume of 186 million gallons. COFFEE, JUICE REMAIN UNHARMED Another major product deemed essential to American consumers -- coffee -- was also exempted. Brazil's coffee exports to the U.S. totaled $845 million through May, down 31% from a year ago. Brazil exported a record $2.68 billion in coffee to the U.S. in 2025. Other agricultural products, such as oranges and other produce, will also be excluded from the tariffs. The U.S. imports more than $1 billion in Brazilian fruits and juices annually. Products that will be subject to tariffs include imported sugar and wood products from Brazil. Also see, "Beef Imports Divide Trump's Trade Agenda," https://www.dtnpf.com/…. Chris Clayton can be reached at Chris.Clayton@dtn.com Follow him on social platform X @ChrisClaytonDTN (c) Copyright 2026 DTN, LLC. All rights reserved. |
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