SAO PAULO (AP) — Brazilian coffee exporters celebrated Friday after U.S. President Donald Trump ordered the removal of additional import tariffs on the product that had been set at 40% in July.

Cecafé, Brazil’s coffee exporters council, called the tariff hike “a complete loss of competitiveness.”

“The tariff reversal comes after months of intense work representing the interests of Brazilian coffee. It is a historic victory for the entire coffee agribusiness production chain,” the council said in a statement.

Brazil has long been a key supplier of beef and coffee to the United States. On Thursday, Trump lifted tariffs on Brazilian goods as part of an effort to lower consumer costs for Americans. The decision affected coffee, fruit and beef, among other products.

The U.S. leader had imposed additional import taxes on Brazilian goods, citing trade practices he deemed unfair and the prosecution of former President Jair Bolsonaro, who was later sentenced to 27 years in prison for attempting to stage a coup after losing the 2022 election.

Before the tariffs, U.S. government data showed Brazil, the world’s top coffee producer, supplied about 30% of the American market, followed by Colombia at roughly 20% and Vietnam at about 10%.

“The removal of the 40% tariff imposed by the U.S. government on several Brazilian agricultural products is a victory for dialogue, diplomacy and common sense,” Brazilian President Luiz Inácio Lula da Silva said Thursday on X. He also shared a video reacting to Trump’s order, saying he was pleased with the decision.

Trump and Lula have been negotiating over trade, which could further reduce tariffs. Lula also praised “the frank dialogue” with Trump, and said that Brazil would continue talks.

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