Natural resources not cultivated in the United States-such as coffee, cocoa, mangoes, and pineapples-may be exempt from import tariffs under current and future U.S. trade deals, Commerce Secretary Howard Lutnick stated Tuesday on CNBC's Squawk Box.

Lutnick cited President Trump's precedent of offering zero tariffs for non-domestically grown goods in recent agreements with Indonesia and the European Union. "If you grow something and we don't grow it, that can come in for zero," Lutnick explained, highlighting products like coffee, cocoa, mangoes, and cork as beneficiaries.

A key excerpt from the Agreement on Reciprocal Trade between the U.S. and Indonesia, published last week by the White House, affirms this:

"The U.S. may also identify certain commodities that are not naturally available or domestically produced... for a further reduction in the reciprocal tariff rate."

Indonesia, for instance, agreed to an initial 19% tariff, which could be lowered to zero for select tropical exports. This move aims to strengthen trade with producing countries while protecting U.S.-grown commodities.

Brazil Faces a Tariff Cliff

While Indonesia and the EU enjoy favorable terms, Brazil, which supplies nearly one-third of all coffee consumed in the U.S., may soon be hit with a 50% tariff, starting August 1. President Trump has threatened the steep duty, citing diplomatic tensions and dissatisfaction with Brazilian judicial actions against former President Jair Bolsonaro, a Trump ally.

This geopolitical layer adds uncertainty for U.S. coffee importers and roasters, who rely heavily on Brazilian beans to meet domestic demand-the highest in the world.

Industry analysts warn that if Brazil's tariff threat materializes, it could disrupt supply chains, inflate commodity input costs, and trigger price volatility across the coffee sector. It may also shift import focus to other tropical exporters with tariff-free status under new agreements.

Strategic Trade Realignment

This evolving tariff structure underlines a strategic U.S. policy realignment: prioritizing bilateral deals that reward allied exporters of non-U.S. grown commodities, while penalizing geopolitical adversaries-even if they are essential trade partners.

From a U.S. agri-trade standpoint, such differentiation could reshape sourcing strategies for food processors, importers, and co-ops, affecting downstream commodity prices and supply chain risk management.

Lutnick did not clarify whether Brazil could eventually receive similar exemptions if a new bilateral deal is struck or existing tensions ease.