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United States Implements Additional 50% Tariffs on Brazilian Products

01/08/2025

In brief

In an Executive Order issued on July 30, 2025[1], the United States government implemented the previously announced 50% tariff[2] on imports of Brazilian products. The measure imposes a 40% tariff that adds to the reciprocal 10% tariffs implemented on April 2, 2025[3][4], reaching a total of 50%. The measure will take effect at 12:01 a.m. eastern daylight time on August 6.

In more detail

According to the U.S. government, the tariff increase is based on allegations that Brazilian authorities have been taking measures that could be interpreted as censorship of U.S. citizens and companies. These measures include requests to U.S. digital platforms to block content and provide user data.

The Executive Order[5] addresses the stacking order, stating that the new tariff will be applied in addition to existing ones, except for imports subject to Section 232 measures.

The measure excludes 694 products listed in Annex I, roughly representing 44% of the total Brazilian exports to the United States in 2024. Exempt items include minerals, energy products, basic metals, fertilizers, pulp and paper, certain chemicals, and goods for civil aviation. Products subject to the new tariff include key agribusiness exports such as meat, coffee, fruits, and sugar. Goods in transit before the seven-day deadline and cleared by October 5, 2025 are also excluded.

The Executive Order also provides that, in the event of retaliation by the Brazilian government, the United States. may apply a corresponding increase in tariffs[6]. On the other hand, it establishes that if Brazil adopts measures deemed appropriate to address the causes of the decision and aligns itself with the United States on national security, economic, and foreign policy matters, the order may be reviewed or amended.

On the same day as the Order, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) imposed sanctions against a Brazilian judge who had presided over cases involving American social media companies. The Executive Order also mentions the “persecution” of former Brazilian President Jair Bolsonaro, who has been indicted on charges of corruption.

Exporters should maintain continuous monitoring and strategic engagement in ongoing proceedings, with particular attention to any action by the U.S government under Section 301 of the Trade Act of 1974. This is a time that requires focus on three fronts: (i) monitoring, (ii) contingency planning, and (iii) identification of opportunities. This is a fast-developing area, and there may be some changes.

 

[1] https://www.whitehouse.gov/presidential-actions/2025/07/addressing-threats-to-the-us/

[2] https://truthsocial.com/@realDonaldTrump/posts/114825119138468153.

[3] https://www.whitehouse.gov/videos/my-fellow-americans-this-is-liberation-day-april-2-2025-president-donald-j-trump-%F0%9F%87%BA%F0%9F%87%B8%F0%9F%A6%85/

[4] On July 31, 2025, the U.S. government updated Executive Order 14257, dated April 2, 2025 (Regulating Imports with a Reciprocal Tariff). The 10% tariffs initially imposed on Brazil were maintained. Available at: Further Modifying the Reciprocal Tariff Rates – The White House. Accessed on: August 1, 2025.

[5] Considering ComexStat data according to the SH6 codes of the products listed in Annex I of the Executive Order. Case-by-case analysis and alignment of the 8-digit codes would likely reduce the percentage indicated in the text by 2–3 percentage points, in line with other market estimates.

[6] “For example, if the Government of Brazil retaliates by raising tariff rates on United States exports, I will increase the ad valorem duty rate set forth in this order by a corresponding amount.”

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