Natural resources unanimously in the United States, such as coffee and cocoa, may be exempt close to import tariffs after new commercial agreements with producing countries. According to a report issued by Marcelo Teixeira, US Minister of Trade Howard Lottenic announced that President Donald Trump has approved zero ranks for these resources in deals with countries such as Indonesia and the European Union.
Also read: The European Union and the United States agree on the new tariff rates
While appearing on the CNBC Squawk box, Lutnick explained, “If you planted something and did not grow, it can come against zero, so if we hold a deal with a country that grows mango and pineapple, they can come without tariffs, because coffee and cocoa will be other examples of natural resources.” This step is part of the broader agreement on mutual trade between the United States and Indonesia, which determines the potential tariff discounts of the naturally unavailable goods in the United States
Indexbox data indicates that Brazil, which provides a third of consuming coffee in the United States, may face major commercial challenges if the proposed tariff is 50 % on Brazilian products valid on August 1. This potential tariff is related to political tensions, as President Trump has expressed dissatisfaction with the Brazilian judicial treatment for the treatment of former President Jair Bolsonaro.
Source: Indexbox Market Intelligence
