The United States has this morning (Australian time) formally removed a 40 percent tariff previously imposed on Brazilian beef, in a development that represents another significant shift in US agricultural trade policy.

At one point this year beef sold from Brazil to the US had faced tariff imposts as high as 76.4pc.

That comprised:

• a 10pc tariff imposed on goods from Brazil imposed in April as part of the so-called Liberation Day tariffs.
• A subsequent tariff increase of another 40pc in July which was framed by President Trump as retaliation over the prosecution of his ally, right-wing former Brazilian President Jair Bolsonaro.
• A 26.4pc tariff on Brazilian beef which was triggered in mid-January after exceeding its lower-tariff quota to the US under the MFN ‘Other Country’ quota  (see earlier report).

The 10pc ‘Liberation Day’ tariff on Brazil and a range of other countries including Australia was removed by President Trump in an announcement last weekend.  

This morning President Trump has now also removed the additional 40pc “retaliatory” tariff on Brazilian beef he had imposed in July.

An executive order signed by President Donald Trump this morning (the night of 20 November US time) applies the removal of the 40 percent tariff previous imposed in July “immediately” and “retroactively to 12:01am EST on November 13, 2025”, meaning importers of Brazilian beef into the US will receive refunds for duties already paid.

That in effect means Brazilian beef still currently wears the 26.4 percent quota it incurred back in mid-January for exceeding its relatively time 65,000t “other country” quota, which it did in just 17 days.

Given it is now getting close to the end of the year, trade sources have told Beef Central Brazilian exporters would now be likely to be starting to load up to send new product ready to land in early January after the new quota-year resets.

Why the tariff has been lifted

In explaining the decision, President Trump cited progress in negotiations with Brazilian President Luiz Inácio Lula da Silva and updated advice from US officials monitoring the trade dispute.

The Executive Order states:

“I have received additional information and recommendations from various officials who… have been monitoring the circumstances involving the emergency declared in Executive Order 14323. For example, in their opinion, certain agricultural imports from Brazil should no longer be subject to the additional ad valorem rate of duty… because… there has been initial progress in negotiations with the Government of Brazil.”

“I have determined that it is necessary and appropriate to modify the scope of products subject to the additional ad valorem rate of duty… Specifically, I have determined that certain agricultural products shall not be subject to the additional ad valorem rate of duty imposed under Executive Order 14323.”

Brazil’s agricultural sector, and especially its beef industry, had been lobbying intensely for the tariff to be lifted, arguing it had distorted trade flows and undermined long-standing supply chains into the US market.

Brazil is the world’s largest beef exporter and a major supplier of lean manufacturing beef into the US. Removal of the 10pc Liberation Day tariff and the more recent 40pc tariff significantly improves Brazil’s price competitiveness in the market, from 76.4pc tariffs to 26.4pc tariffs and even less for the small amount of in-quota beef it can supply (Beef Central is currently seeking clarification on what Brazil’s in-quota tariff level is).

Australian beef exports to the US are running at multi-year highs, supported by low-tariff access, long-standing trade relationships with the market and strong demand.