U.S. President Donald Trump imposed 50 percent tariffs on Brazilian goods, citing a supposed witch-hunt against former President Jair Bolsonaro and unfair trade practices. Brazilian Finance Minister Fernando Haddad said Brazil may challenge the tariffs in U.S. courts and pledged not to pursue lobbying. The tariffs have pushed prices higher across many products. Coffee prices, already rising due to drought, are up 14.5 percent year-on-year and are expected to climb further; the U.S. sources about 35 percent of its unroasted coffee from Brazil. Major buyers such as JM Smucker reported a 22 percent fall in coffee profits and warned of further price increases. The U.S. also relies heavily on Brazilian beef, particularly ground beef.
Coffee and beef prices have already surged as tariffs on Brazil are expected to drive them higher. Brazilian officials are considering a legal challenge to the steep tariffs imposed by United States President Donald Trump. On Wednesday, Brazilian Finance Minister Fernando Haddad told the news portal UOL that the South American country might head to US courts to challenge the legality of the 50 percent tariffs on Brazilian goods this month.
We will go to court if needed, Haddad said. He added that Brazil would not engage in lobbying efforts. Trump cited what he called a witch-hunt against former Brazilian President Jair Bolsonaro, who is on trial on charges of plotting a coup, and trade practices that he said were unfair as the reasons for the tariff rate. Brazil has expressed indignation at the tariffs, noting that it has run persistent trade deficits with the US.
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