Brazil’s government says it will buy some domestic products hit by Trump’s tariffs

SAO PAULO (AP) – Brazil’s government said on Monday it will buy several domestic products hit by the 50% higher U.S. tariffs, such as acai, coconut water, mangoes and Brazilian nuts – and that it will pay an “adequate” price for them.

Coffee and beef did not make the cut, though they are also affected by the measures imposed by U.S. President Donald Trump, who has linked the tariffs on Brazil with the trial of his personal and political ally, former President Jair Bolsonaro.

The development is the latest chapter in the tariff conflict between the Trump administration and Brazil. Most of the domestic products that the Brazilian government intends to buy, which also include honey and fish, will be used in state schools or in stock building nationwide.

Brazil’s Agrarian Development Minister Paulo Teixeira told reporters in Brasilia, the country’s capital, that products like coffee and beef that didn’t make the government’s list are of interest to other markets and will presumably have other buyers.

Teixeira, a close ally of President Luiz Inácio Lula da Silva, added that Brazil’s government “can’t pay the price paid by exporters, which are set in dollars,” but will find an adequate one for all of these items.

“There’s other markets interested in Brazilian coffee,” he said. “It is the same thing with beef, there’s other markets willing to buy it for it cheap and of the highest quality.”

The U.S. measures against Brazil have damaged one of the Western hemisphere’s most important and long-standing relationships. The Trump administration has also sanctioned the main judge of Brazil’s top court as he prepares to sentence Bolsonaro in September.

The White House has embraced a narrative pushed by Bolsonaro allies in the United States, that the former Brazilian president’s prosecution for attempting to overturn his 2022 election loss is part of what he called “a witch hunt.”

Brazil’s government estimates that 35.9% of the country’s goods shipped to the American market have been affected. That is about 4% of Brazil’s total exports.

Brazil’s Lula has repeatedly said he wouldn’t call Trump to talk about trade for he says the American leader has no interest in negotiating.

Earlier this month, Brazil also unveiled a plan to support local companies affected by Trump’s tariffs. Dubbed “Sovereign Brazil,” the plan provides for a credit lifeline of 30 billion reais ($5.5 billion), among other measures.