U.S. Drops 40% Tariff on Brazilian Beef in New White House Executive Order

The change reverses part of a July trade action that had imposed elevated import duties on multiple categories of Brazilian goods and is the latest effort by the Trump administration to bring grocery prices down.

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In the Executive Order, President Donald Trump specifically referenced the call he had with Brazilian President Luiz Inácio Lula da Silva on Oct. 6, which he said addressed concerns in the previous Executive Order that added the additional tariffs.
(MGN Image)

A White House Executive Order issued Thursday modifies the scope of earlier tariffs placed on products from Brazil, effectively removing the additional 40% duty applied to Brazilian beef. The change reverses part of a July trade action that had imposed elevated import duties on multiple categories of Brazilian goods. It’s the latest effort by the Trump administration to bring food prices down for Americans.

Brazil is the world’s largest beef exporter, and its product plays a key role in filling U.S. demand, especially in processing beef and manufacturing trim. The tariff increase earlier this year had raised costs for processors and food manufacturers, tightening supply availability and contributing to price pressure.

This latest move follows an Executive Order signed on Friday that modified the scope of the reciprocal tariffs he first announced on April 2, 2025. The Friday EO exempted several agricultural products from tariffs, including fruit, coffee and fertilizer.

What Thursday’s Executive Order Does

According to the new order, certain agricultural imports from Brazil are now exempt from the extra ad valorem tariff that had been layered on top of existing duties. Beef is among the commodities specifically impacted — meaning importers will no longer pay the higher tariff rate that had been in effect since mid-summer.

A complete list of the products that will no longer face the 40% tariff was posted online. That list includes the following beef products:

  • Fresh or chilled beef
  • Frozen beef
  • Edible bovine offal, fresh or chilled
  • Edible bovine offal, frozen
  • Salted, dried, smoked or brined beef

Read More: What Does Talk of $10 Ground Beef Mean to Producers?

Why the White House Lifted the Tariff

In the Executive Order, President Donald Trump specifically referenced the call he had with Brazilian President Luiz Inácio Lula da Silva on Oct. 6, which he said addressed concerns in the previous Executive Order that added the additional tariffs.

“These negotiations are ongoing. I also have received additional information and recommendations from various officials who, pursuant to my direction, have been monitoring the circumstances involving the emergency declared in Executive Order 14323,” said Trump in the Executive Order. “For example, in their opinion, certain agricultural imports from Brazil should no longer be subject to the additional ad valorem rate of duty imposed under Executive Order 14323 because, among other relevant considerations, there has been initial progress in negotiations with the Government of Brazil.”

The Executive Order went on to say: “after considering the information and recommendations these officials have provided to me and the status of negotiations with the Government of Brazil, among other things, I have determined that it is necessary and appropriate to modify the scope of products subject to the additional ad valorem rate of duty imposed under Executive Order 14323. 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.”

Accordingly, an updated version of Annex I to Executive Order 14323 is attached to this order, which shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on Nov. 13, 2025. In my judgment, these modifications are necessary and appropriate to deal with the national emergency declared in Executive Order 14323.

Background on Tariffs on Brazilian Beef

The Trump administration issued an executive order on July 30, 2025, instituting an additional ad valorem duty of 40 % on many products of Brazilian origin. That 40% duty was in addition to an existing 10% tariff under a separate “reciprocal tariff” measure —bringing the total effective tariff to about 50% on most affected Brazilian goods.

Fear of Trump Dumping Tariffs Caused Selloff in Cattle Earlier This Week

Even the fear of Trump removing the steep tariff on Brazilin beef caused cattle prices to tank earlier this week.

Brad Kooima with Kooima Kooima Varilek told Michelle Rook on Monday that concerns of the tariff being lowered was part of the selloff in the cattle futures last week and why the market started off lower Monday.

Kooima said futures stabilized after it was confirmed the 50% tariff on Brazil beef was only lowered 10%.

Looking ahead, Rook reports the other major issue hanging over the cattle market is when the Trump administration will reopen the Mexican border to live cattle import. Some reports say the Trump administration is pushing for that to happen in January.

Read More: Did the Administration’s Plan to Lower Beef Prices Wreck the Bull Run in the Cattle Market?

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