16 January 2026
Brazil Secures Major EU Trade Deal, Dodging US Tariffs and Boosting Agricultural Exports in 2026 Economic Breakthrough
Brazil Tariff News and Tracker
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Welcome to Brazil Tariff News and Tracker, listeners, where we cut through the trade noise to spotlight what's hitting Brazil's economy hardest.
As 2026 kicks off, Brazil's agribusiness sector is bracing for headwinds from U.S. tariffs under the Trump administration, even after many were rolled back last year. According to a Rabobank outlook report highlighted by AgTechNavigator, the U.S. levied an 18% reciprocal tariff on Brazil in 2025—dubbed Liberation Day by Trump—plus threats tied to the trial of former President Jair Bolsonaro. Those duties on coffee and beef were eventually dropped as they spiked U.S. consumer prices, with Rabobank's Andy Duff noting Brazil's supply was too vital to replace. Brazil's top partners remain China at 32.7% of ag exports and the EU at 14.9%, per Brazil’s Ministry of Agriculture data.
But here's the game-changer: On January 9, the EU Council greenlit the EU-Mercosur Partnership Agreement after 26 years of talks, as reported by Access Partnership. Formal signing happens January 17 in Paraguay, creating a free-trade zone for 700 million people and $22 trillion in GDP, per the LA Times. Mercosur—led by Brazil—eliminates tariffs on 91% of EU goods over 15 years, with the EU reciprocating on 92%. This boosts Brazil's beef, coffee, soybeans, and more into Europe, dodging U.S. volatility. LA Times experts call it a hedge against Trump’s aggression and China’s sway, with Brazil eyeing $7 billion in new EU ag exports via instant coffee, poultry, and orange juice.
Yet uncertainty lingers. ICIS reports the U.S. could revive global tariffs via statutes like Section 122 if courts strike down IEEPA powers, preserving leverage on Brazil. Meanwhile, Brazil shattered soybean and beef export records in 2025, projecting 177 million metric tons of soybeans this harvest, Rabobank says—though high interest rates at 15% and low prices squeeze margins.
With Lula eyeing a fifth term amid 2026 elections, fiscal shifts could weaken the real and stoke inflation at 4.26%. Listeners, stay tuned as EU markets open gradually over six years, countering any U.S. tariff revival.
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Avoid ths tariff fee's and check out these deals https://amzn.to/4iaM94Q
This content was created in partnership and with the help of Artificial Intelligence AI
As 2026 kicks off, Brazil's agribusiness sector is bracing for headwinds from U.S. tariffs under the Trump administration, even after many were rolled back last year. According to a Rabobank outlook report highlighted by AgTechNavigator, the U.S. levied an 18% reciprocal tariff on Brazil in 2025—dubbed Liberation Day by Trump—plus threats tied to the trial of former President Jair Bolsonaro. Those duties on coffee and beef were eventually dropped as they spiked U.S. consumer prices, with Rabobank's Andy Duff noting Brazil's supply was too vital to replace. Brazil's top partners remain China at 32.7% of ag exports and the EU at 14.9%, per Brazil’s Ministry of Agriculture data.
But here's the game-changer: On January 9, the EU Council greenlit the EU-Mercosur Partnership Agreement after 26 years of talks, as reported by Access Partnership. Formal signing happens January 17 in Paraguay, creating a free-trade zone for 700 million people and $22 trillion in GDP, per the LA Times. Mercosur—led by Brazil—eliminates tariffs on 91% of EU goods over 15 years, with the EU reciprocating on 92%. This boosts Brazil's beef, coffee, soybeans, and more into Europe, dodging U.S. volatility. LA Times experts call it a hedge against Trump’s aggression and China’s sway, with Brazil eyeing $7 billion in new EU ag exports via instant coffee, poultry, and orange juice.
Yet uncertainty lingers. ICIS reports the U.S. could revive global tariffs via statutes like Section 122 if courts strike down IEEPA powers, preserving leverage on Brazil. Meanwhile, Brazil shattered soybean and beef export records in 2025, projecting 177 million metric tons of soybeans this harvest, Rabobank says—though high interest rates at 15% and low prices squeeze margins.
With Lula eyeing a fifth term amid 2026 elections, fiscal shifts could weaken the real and stoke inflation at 4.26%. Listeners, stay tuned as EU markets open gradually over six years, countering any U.S. tariff revival.
Thanks for tuning in—subscribe now for weekly updates. This has been a Quiet Please production, for more check out quietplease.ai.
For more check out https://www.quietperiodplease.com/
Avoid ths tariff fee's and check out these deals https://amzn.to/4iaM94Q
This content was created in partnership and with the help of Artificial Intelligence AI