US eliminates high tariffs on several Brazilian agricultural products

(AFP) The Trump administration announced Thursday that it would eliminate high tariffs imposed on several agricultural products from Brazil, including beef, coffee, and tomatoes, a move applauded by leftist Brazilian President Luiz Inacio Lula da Silva.

These changes come at a time when President Donald Trump promised to reduce the cost of living for Americans.

The order posted on the White House website extends a move by Trump last week to reduce "reciprocal" tariffs—imposed to address trade practices the president considers unfair—on various agricultural imports.

In April, Trump had set "reciprocal" tariffs of at least 10% on most products exported to the United States in the name of reducing the country's trade deficit and supporting local production.

U.S. tariffs on many Brazilian products rose sharply in early August as Trump stepped up pressure against Brazil over the controversial trial of former Brazilian president Jair Bolsonaro.

According to Trump, the trial of Bolsonaro was a "witch hunt," a claim rejected by Lula.

Then, Trump imposed an additional 40% tariff on many Brazilian products, although broad exemptions covering items such as orange juice mitigated the impact.

However, this tariff affected key products such as coffee, beef and sugar.

The decree published Thursday stipulates that "certain agricultural products will not be subject to the ad valorem tariff additionally imposed."

According to the text, the authorities considered that "among other relevant considerations, initial progress has been made in negotiations with the Brazilian government."

"I am happy," says Lula

The new exclusions from this 40% tariff will apply retroactively to November 13.

The Brazilian president celebrated the news on Thursday.

"Today I am happy because President Trump has already started to reduce some tariffs that had been placed on some Brazilian products," Lula said during an automotive industry event in Sao Paulo.

Over the weekend, Brazilian Vice President Geraldo Alckmin had already estimated that the withdrawal of tariffs announced on Friday, the 14th, by Washington on products such as coffee was "in the right direction" but hoped to obtain further reductions in his talks with the United States.

Washington and Brasilia had been negotiating for several weeks to end their trade dispute, after a meeting between Trump and Lula in October in Malaysia led to a thaw in bilateral relations.

Negotiations intensified in recent days with meetings between the two countries' diplomatic chiefs, the US's Marco Rubio and Brazil's Mauro Vieira, on Wednesday, 12, in Canada and on Thursday, 13, in Washington.

Contrary to most countries affected by Washington's tariffs, Brazil's trade balance with respect to the United States is in deficit.