In a move anticipated to provide significant relief to American consumers and markets, United States President Donald Trump has signed an executive order to remove a key tariff on Brazilian coffee and beef imports. This decision, made on Thursday, November 21, 2025, is a direct response to the soaring prices and supply squeezes that have plagued U.S. shoppers.
Immediate Market Impact and Price Relief
The 40 per cent tariff, initially announced in July, had caused a sharp decline in shipments from Brazil, the world's top supplier of both coffee and beef. This created a supply crunch in the United States, exacerbating a price surge for these essential goods during a period of decades-high food inflation. The National Coffee Association welcomed the decision, stating, "Two-thirds of American adults drink coffee each day, and every cup will cost less thanks to President Trump’s decision to remove tariffs on coffee imports from Brazil."
The financial markets reacted swiftly. Futures for premium arabica coffee dropped as much as 6.6 per cent to an almost two-month low in New York following the announcement. This comes after prices had hit a record high in October, driven by the tariffs and lackluster global harvests. Similarly, live cattle futures fell by as much as 3.4 per cent, reaching their lowest point since June.
Behind the Decision: Soaring Inflation and Economic Pressure
This executive action, which covers a basket of commodities, highlights the administration's urgent need to tackle rising food costs. American households have been struggling with high grocery bills, and this economic strain has negatively impacted public perception of Trump's handling of the economy. The tariff removal is seen as a strategic effort to curb inflation. According to the Bureau of Labor Statistics, an inflation index for roasted coffee had surged to an all-time high in August.
Analyst Fernando Maximiliano from StoneX confirmed the expected outcome, saying, "We expect exports to resume. Fears of a shortage in the U.S. market had pushed futures prices higher and now some relief is expected." This sentiment reflects a broader hope that the move will stabilize the market.
A Complex Picture for Beef and Global Trade
The situation for beef has been particularly challenging for the Trump administration. Consumer prices for beef soared to records, compounded by a shrinking domestic cattle herd. While the U.S. has relied more on foreign shipments to fill the gap, the threat of tariffs caused a sharp decline in Brazilian beef imports. However, the price relief for consumers may not be immediate, as strong demand continues to keep retail beef prices elevated.
For Brazil, the impact of the earlier tariffs was less severe than anticipated. The country managed to maintain its overall beef export levels by redirecting shipments to other markets like Mexico and China. Marcos Jank, a senior professor at Insper, noted, "Those who ended up being harmed more than anyone by the tariff were the American producers and consumers." This underscores how the policy initially backfired, hurting the very people it may have been intended to protect.
This tariff cut follows a separate action last week where Trump also removed a 10 per cent duty on the same products, signaling a concerted effort to address the cost-of-living crisis facing American consumers.
