US tariff: additional fee of 25% comes into effect this Wednesday; see questions and answers

Ana Flor: Support package against tariffs will be charged per job The additional tariff of 25% from the United States on part of Brazilian products exported to the country comes into force this Wednesday (22). The measure was announced after an investigation by the Donald Trump administration concluded that Brazil adopts practices that "encumber or restrict" trade with the USA. Examples cited include the PIX payment system and the regulation of digital platforms. ? The justifications were widely contested by the Brazilian government, which considers the measure an attempt to interfere in internal issues and considered non-negotiable. The assessment in Brasília is that the tariff is politically motivated. (read more below) The new tax leaves out an extensive list of products, including oil, coffee and beef. On the other hand, sectors such as ethanol, agricultural machinery and paper will be affected by the measure. See questions and answers about the new tariff below. What changes with the tariff and when does it come into force? What are the main products affected? What are the impacts for Brazil? How does the US government justify the measure? What does the Brazilian government say? Will Brazil use the Economic Reciprocity Law? What can Brazil's responses be? What measures has the Brazilian government announced so far? Could rates increase further? Drone image of the Port of Santos (SP) Reuters What changes with the tariff and when does it come into force? Confirmed last Wednesday night (15) by the Trump administration, the additional 25% tariff on Brazilian products exported to the USA comes into effect this Wednesday (22). The surcharge covers around 3,000 items and will be charged to American importers when Brazilian products enter the USA. ? In practice, this increases the cost of bringing these products to the country and may discourage purchases of Brazilian products by American companies. Meanwhile, more than 2,000 other products were left out of the measure. Many of them were excluded because they were considered strategic for the American economy, either due to the risk of making essential products more expensive, or because the country does not produce enough of these items.

What are the main products affected? Among the 50 main Brazilian products exported to the USA in 2025, items such as crude oil, coffee beans, aircraft, beef, cellulose, orange juice, pig iron and niobium iron were left out of the new tariff. On the other hand, products such as industrial machinery, tires, sugar, ethanol, tobacco, wood, shoes and some aluminum items are now subject to the additional tariff. SEE HERE WHAT EACH ITEM LOOKS like: Trump tariff: see the list of exempt and impacted products

What are the impacts for Brazil? The Minister of Development, Industry, Commerce and Services (MDIC), Márcio Elias Rosa, stated that the new tariff will reach 18% of Brazilian exports to the USA. According to him, the percentage is based on exports from 2024, the year before the first tariffs announced by Trump. The value corresponds to US$7.4 billion (R$37.6 billion). If the base is 2025, the participation of affected sectors drops to 15%, equivalent to US$5.8 billion (R$29.4 billion). The minister added that, with the new measure, 57% of products exported by Brazil to the USA will remain tariff-free. In agribusiness, the Brazilian Confederation of Agriculture and Livestock (CNA) estimates that the tariff will affect R$4.6 billion per year in exports, equivalent to 36.5% of the sector's sales to the USA. According to the Minister of Finance, Dario Durigan, despite the segments affected, the measure will not have an impact on "the country's economy as a whole". Experts also assess that the effects will be restricted, among other factors, by the extensive list of exceptions. READ MORE:

How does the US government justify the measure? The decision is the result of a trade investigation by the United States Trade Representative (USTR), opened based on Section 301 of the Trade Act of 1974. The mechanism allows the American government to investigate practices of other countries that it considers harmful to US trade. In the final report, the USTR stated that some Brazilian policies were "irrational" or "restrictive" and could "burden or restrict" trade with the US. Among the topics analyzed are: PIX and payment services: the USTR stated that the Brazilian system favors PIX to the detriment of American companies. Regulation of digital platforms: the body questioned Brazilian court decisions involving social networks and US technology companies. Trade agreements: Americans criticized preferential tariffs granted by Brazil to partners such as Mexico and India. Illegal deforestation: the report highlighted flaws in environmental inspection. Ethanol market: the USA alleged a lack of reciprocity in access to the Brazilian market. Intellectual property: the document cited problems in combating piracy and delays in analyzing patents. Fighting corruption: the USTR criticized measures adopted by Brazil and cited decisions related to Operation Lava Jato.

What does the Brazilian government say? The government classified the tariff as a "regrettable milestone" in the relationship between the two countries and stated that the measure is politically motivated as it involves issues considered internal and non-negotiable, such as the PIX. According to Valdo Cruz's blog, President Lula (PT) advised allies to avoid radicalism in their reaction to the tariff. Meanwhile, vice-president Geraldo Alckmin classified the measure as "unfair and unreasonable" and stated that Brazil "has not left the negotiating table". For Finance Minister Dario Durigan, it is still "not appropriate to talk about retaliation" against the USA. "We will continue to protect our geological sovereignty without 'viralism' and we will continue to protect our democracy against undue international interference," he stated.

Brazil will use the Economic Reciprocity Law

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