The US president's decision means that the 40 percent tariffs on products such as beef, coffee and cocoa will now be lifted. Brazil, the world's largest coffee producer, accounts for a third of all coffee consumed in the US.
The announcement has an immediate effect on the futures market for coffee beans, and after earlier in November being at the highest price level since April, the futures price for arabica beans is now falling sharply.
Trump's decision to impose tariffs on Brazil in July earlier this year was a punishment for the country's legal process against former president and Trump ally, Jair Bolsonaro.
