Natural resources not cultivated in the United States, such as coffee and cocoa, may soon be exempt from import tariffs following new trade agreements with producing countries. According to a report by Marcelo Teixeira, U.S. Commerce Secretary Howard Lutnick announced that President Donald Trump has approved zero tariffs for these resources in deals with nations like Indonesia and the European Union.
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During an appearance on CNBC’s Squawk Box, Lutnick explained, “If you grow something and we don’t grow it, that can come in for zero, so if we do a deal with a country that grows mangos, pineapple, then they can come in without a tariff, because coffee and cocoa will be other examples of natural resources.” This move is part of the broader Agreement on Reciprocal Trade between the United States and Indonesia, which outlines potential tariff reductions for commodities not naturally available in the U.S.
IndexBox data indicates that Brazil, which supplies a third of the coffee consumed in the U.S., could face significant trade challenges if the proposed 50% tariff on Brazilian products takes effect on August 1. This potential tariff is linked to political tensions, as President Trump has expressed dissatisfaction with the Brazilian judiciary’s treatment of former President Jair Bolsonaro, a political ally.
