On the afternoon of July 30, the U.S. government issued an executive order imposing an additional 40% tariff on Brazilian exports to the United States. With the additional tariff, Brazilian products will now enter U.S. territory subject to a total tariff of 50% of their value. The new tariffs will take effect on August 6, next Wednesday.
The measure is justified as a defense against measures that “threaten the national security, foreign policy, and economy of the United States.” In his statement, U.S. President Donald Trump declared that members of the Brazilian government are allegedly taking actions that “infringe the free expression rights of United States persons, violate human rights, and undermine the interest the United States has in protecting its citizens and companies.”
Contrary to previous speculation surrounding the potential new treatment of Brazilian products, the U.S. government has limited the scope of the tariff and excluded a broad list of products, covering over 600 HTSUS codes (the U.S. tariff classification system, known as the Harmonized Tariff Schedule of the United States). The exemption from the additional tariff applies to products in the following categories: energy sector (such as natural gas, petroleum and its derivatives, coal, and electricity); metals and minerals (especially those critical to the tech industry, like silicon, and certain steel, aluminum, copper, and iron products, including those for industrial use); Pulp and paper products; various types of piping, including those made from plastic and polymers; orange juice and pulp; Brazil nuts; fertilizers and select wood products (such as tropical sawn or chipped wood, wood pulp, sisal, and other Agave-based fibers). In addition, high-value-added products such as all civil aircraft and vehicles, including parts, and electronic devices such as smartphones, antennas and audio/video recording and playback equipment, were exempted. Lastly, the exceptions also apply to all goods already in transit to the U.S., returned goods, donations, and personal items in passengers’ luggage entering the country.
The American Chamber of Commerce for Brazil (AMCHAM) estimates that the exemptions cover more than 40% of the total value of Brazilian exports to the United States in the past year. Not included in the list of exceptions—and therefore subject to the new additional tariff—are products such as coffee, various types of meat, fresh and processed fruits, textiles and footwear, and other apparel industry products.
The Brazilian government may, under the newly enacted Reciprocity Law (Law No. 15,122/2025), apply countermeasures against the United States in an attempt to offset the negative impact on Brazil’s international competitiveness. It may also adopt direct or indirect support measures for the domestic sectors affected by the new tariffs. Additionally, Brazil may bring the case before the Dispute Settlement Body of the World Trade Organization (WTO) in an effort to reverse the U.S. government’s unilateral actions.