The Trade Dispute Between Brazil and the United States Entered a New Chapter With the Promise of a Democrat Congressman to Try to Reverse Tariffs on Coffee.
Democrat Congressman Ro Khanna announced that he intends to introduce a bill to exempt coffee from the tariffs imposed by the United States.
The measure is part of the tariff package determined by former President Donald Trump, who returned to adopting an aggressive trade policy against several countries, including Brazil.
According to Khanna, the proposal will be bipartisan.
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This means it will have support from Republican lawmakers, Trump’s own party. The announcement was made by the congressman himself on his account on X, formerly Twitter.
He stated that coffee production in the U.S. is less than 1% of domestic demand, which makes the tariff an unjustified burden for consumers. “These tariffs on Brazil, Vietnam, Indonesia, and Colombia represent a tax of 15% to 20% on Americans right at the start of the day. Anyone who always has a cup of coffee in hand hates this tax!,” he wrote.
Context of the Tariffs
Trump’s tariff hike went into effect on August 6. For Brazilian coffee, the rate increased to 50%, which provoked a strong reaction in the sector.
Brazil is the largest individual supplier of coffee to the U.S., with a share between 20% and 30% of imports, depending on the harvest.
Besides coffee, the country accounts for 12% of the cane sugar supply and 9% of the beef consumed in the U.S. The tariff has raised concerns among producers and exporters who rely on American purchases to maintain their sales volumes.
According to a report by Folha, the U.S. government is assessing other sources to compensate for the absence of Brazilian products.
