Last Friday, the Supreme Court of the United States of America (USA) decided by majority that several additional tariffs, imposed by the American government in 2025, are not covered by American legislation. The Supreme Court stated that the law used as the basis for imposing the tariffs – the International Emergency Economic Powers Act (IEEPA) – does not give the U.S. presidency the power to impose tariffs on imports, and that is exclusive to Congress.
After the decision, the government chose to revoke the tariffs, including the additional rates of 40% that were still levied on several Brazilian products. The new executive decision takes effect from 02/24/2026. Tariffs adopted on the basis of other legal instruments remain in place, such as the 50% tariff on steel and aluminum imports, adopted on the basis of Section 232 of the Trade Expansion Act of 1962 for alleged threat to national security.
However, following the decision to revoke the tariffs imposed on the basis of the IEEPA, a new executive order was published, in which the US presidency applied a new import tariff of 10% for products originating in any country. This new measure is based on Section 122 of the Trade Act of 1974, which empowers the president to adopt restrictions on imports in the event of serious balance-of-payments problems. In other words, a different legal basis was sought to maintain at least part of the tariffs that had to be revoked.
Certain product categories were excluded from the new tariff, including (i) critical mineral; (ii) gold, silver and platinum; (iii) energy and related products; (iv) natural resources and fertilizers; (v) certain agricultural products, such as coffee, spices, beef, tomatoes, coconuts, nuts and fruits (oranges, pineapples, avocados, mangoes, among others); (vi) pharmaceutical products and ingredients; (vii) certain electronics; (viii) certain motor vehicles and certain parts; (ix) certain aerospace products; and (x) products that already have additional tariffs applied based on Section 232 of the Trade Expansion Act of 1962, such as steel and aluminum.
The collection of the new tariff will start on 02/24/2026 and will be valid for 150 days. After that deadline, the US Congress must evaluate the measure and decide whether it will be maintained. President Trump announced that this tariff should be raised to 15%, the maximum percentage for this type of measure, and that he will seek other measures in the next 150 days to continue applying new tariffs.
For the time being, the situation for Brazilian exports that were still subject to 50% tariffs has improved significantly, since they are now subject to the same tariffs applied to other origins. However, the evolution of the situation and the possible adoption of new measures by the US government be monitored.