ICYMI – Trump’s latest cave in, slashes tariffs on Brazil. Every day brings a TACO story.

President Donald Trump has widened tariff relief for Brazilian food imports, reversing part of the steep trade penalties he imposed earlier this year and aiming to ease pressure on U.S. consumers frustrated by high grocery bills.

An executive order signed Thursday exempts dozens of staple food items from a 40% tariff that had applied to Brazilian goods since the spring. Trump had already rolled back a separate 10% duty last week, but this latest move retroactively eliminates the higher levy from November 13, expanding access to cheaper imports of coffee, orange juice and beef, all categories where prices have hit records due to ongoing shortages.

The reversal marks a diplomatic win for Brazilian President Luiz Inácio Lula da Silva, whose government has pushed for months to unwind Trump’s tariffs. Those duties, raised to 50% in some cases, were originally designed to punish Brazil over the prosecution of former president Jair Bolsonaro, a Trump ally, for alleged coup-related offences.

High-level discussions between Washington and Brasília resumed after Trump and Lula briefly crossed paths in New York in September, followed by a longer meeting in Malaysia last month. Lula has repeatedly noted that Brazil typically runs a trade deficit with the U.S., arguing that the punitive tariffs were disproportionate. Trump’s latest concessions bring both sides closer to what Lula has called a “definitive solution.”

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Tariff relief could ease U.S. food inflation at the margin while boosting Brazilian agricultural exports, supporting BRL sentiment and improving near-term trade dynamics between Washington and Brasília.

This article was written by Eamonn Sheridan at investinglive.com.