Trump Removes 40% Tax on Aircraft Parts, Major Brazilian Tariffs Rolled Back

New Delhi (The Uttam Hindu): US President Donald Trump has removed the 40% tariff imposed on aircraft parts imported from Brazil. A day earlier, he issued an executive order reducing tariffs on several Brazilian goods, including coffee, fruits and beef. Meanwhile, trade talks between Trump and Brazilian President Luiz Inácio Lula da Silva are underway. The final decision on future tariffs will be taken once these talks conclude.

Tariffs Reached 76% Within Six Months

The White House had first imposed a 26% tariff on Brazil in April 2025. Later in July 2025, an additional 40% duty was added. These taxes were applied to beef, coffee, cocoa, seasonal fruits and other agricultural goods to put economic pressure on Brazil. As tariffs increased, the prices of Brazilian coffee and beef rose sharply in the US, increasing inflation for consumers. The Trump administration eventually raised the tariff further, making the total duty reach 76%.

Tariff Relief to Reduce Inflation

To control rising inflation in the US, President Trump removed the 40% duty on Brazilian beef. The 50% tariff on coffee and 40% duty on seasonal fruits were also lifted. Now, the tax on aircraft parts has also been removed. However, the 25% tariff on steel will remain in place for now. With these tariff cuts, prices of several goods in the US are expected to come down.

Brazilian President Lula had earlier announced retaliatory tariffs in response to Trump’s measures. But now, both countries are trying to settle the issue through ongoing trade negotiations.