US tariff affects ethanol, shoes and machinery from Brazil; see affected and exempt items

Despite the broad reach, important items sold by Brazil to the United States were spared. Beef, coffee, oranges, orange juice, petroleum, natural gas, civil aircraft and certain pharmaceuticals are among the main exceptions.

United States tariff

See the Brazilian products taxed and those left out Ethanol, footwear and agricultural machinery are among the items subject to the additional 25% tariff. Meat, coffee, fruit, fuel and aircraft appear on the list of exceptions.

25% additional tariff July 22nd start of collection US$ 15 billion under potential impact

Products that will be taxed Main groups subject to an additional 25% charge.

- Ethanol

- Agricultural machinery

- Clothing

- Electrical machinery

- Shoes

- Gardening tools

- Mining equipment

- Paper

- Organic sugar

- Capital goods

- Manufactured products in general

- Various chemical products

- Processed industrial items

Products that were excluded from the tariff Tap or click on each category to check the list of exempt products.

Animal products and meat

Beef: fresh, chilled or frozen meat; carcasses; half carcasses; cuts with and without bone; high quality cuts and processed meats.

Offal and preparations: tongues, livers, other beef offal and prepared or preserved meat, such as corned beef.

Fish and crustaceans: fresh, chilled or frozen tilapia, except fillets in some cases; yellowfin and bigeye tuna; mackerel; swordfish; lobster and crayfish.

Other products: certified organic natural honey, coral and shells.

Plant products and prepared foods

Vegetables and legumes: tomatoes, with specific entry periods; jicama; breadfruit; chayote; bamboo shoots; water chestnuts; capers and dried mushrooms, such as wood ear and shiitake.

Roots and tubers: Bambara beans, cassava, taro, yams, yautia, dasheens and arrowroot.

Fruits and nuts: coconuts; Brazil nuts; cashew nuts; macadamia; kola nut; areca; pine nuts; bananas; pineapples; avocados; guavas; sleeves; mangosteens; oranges; limes; etrogs; papayas; quinces; kiwis; durians and berries.

Coffee, tea and spices: roasted or not, decaffeinated or not; Green Tea; black tea; yerba mate; pepper; paprika; vanilla; cinnamon; clove; nutmeg; mace; cardamom; coriander; cumin; ginger; saffron; turmeric; laurel; curry and dill.

Cereals, milling and beverages: barley; birdseed; fonio; triticale; starches; flours; orange, other citrus and pineapple juices; as well as coconut water.

Minerals, chemicals and fuels

Ores and minerals: graphite; kaolin; phosphates; barium sulfate; magnesite; asbestos; mica and ores of iron, copper, nickel, cobalt, aluminum, zinc, tin, chromium, tungsten, uranium and titanium.

Fuels and oils: coal; lignite; peat; coke; benzene; toluene; xylenes; naphthalene; crude and refined oil; engine oils and lubricants; biodiesel; natural gas; propane and butanes.

Chemicals: iodine; rare gases; hydrochloric, sulfuric and phosphoric acids; metal oxides; hydrocarbons; halogenated derivatives; alcohols; phenols; ethers; ketones; carboxylic acids; vitamins; hormones and antibiotics.

Medical, pharmaceutical and fertilizer products

Blood and vaccines: human plasma; fetal bovine serum; immunological products; human and veterinary vaccines and toxins.

Medicines: products containing penicillins, insulin, corticosteroids, alkaloids and vitamins.

Fertilizers: fertilizers of animal or vegetable origin; urea; ammonium sulfate; nitrates and superphosphates.

Industrial materials

Plastics and rubber: ethylene, propylene and vinyl polymers; silicones; tubes; hoses; tires, especially for aircraft, and gaskets.

Wood and paper: raw or sawn wood, such as mahogany, teak and meranti; plywood; panels; wood pulps and aircraft paper products.

Metals, machines and equipment

Metals: cast iron; ferroalloys; scrap; steel tubes; copper; nickel; aluminum; zinc; tin and rare metals.

Machinery: aircraft engines, including turbojets and turboprops; pumps; compressors; fans; air conditioning devices; refrigerators and fire extinguishers.

IT and electronics: computers and data processing units; notebooks; keyboards; disk drives; integrated circuits; monitors; projectors and smartphones.

Aircraft, instruments and other products

Aeronautics: balloons; helicopters; airplanes; drones; propellers and landing gear.

Instruments: lenses; prisms; compasses; autopilots; thermometers; barometers and multimeters.

Art and antiques: paintings; sculptures; stamps and collections of historical or botanical interest.

The classification of each product is decisive. The exemption may only apply to certain codes, uses or forms of presentation. Products from the same sector may receive different treatments, and some items continue to be subject to previous US tariffs.

Products that already receive specific tariffs based on Section 232 of American legislation are also excluded from the new charge. This group includes certain steel, aluminum and copper articles, vehicles, auto parts, machines, semiconductors and wooden products.

The exclusion of the 25% tariff, therefore, does not necessarily mean that all such goods will enter the United States without additional taxes. Some items remain subject to previous charges.

When the tariff comes into effect The new charge will be applied to goods that enter for consumption in the United States from 00:01 on July 22, East Coast time, according to the official USTR document.

Products shipped before this time will be able to escape the tariff as long as they arrive and are registered for consumption in the United States before July 29th. Therefore, it is not enough for the goods to have left Brazil: they also need to meet the deadline established for entry into the American market.

Can the 25% fee be added to other charges? The new tariff was created based on Section 301 of the United States Trade Law, a mechanism used by the country to respond to practices considered harmful to American commerce.

Part of Brazilian exports, however, was already subject to other measures. Steel, aluminum and copper products, for example, received additional tariffs of up to 50% based on Section 232 of the Trade Expansion Act.

As the articles already affected by Section 232 are among the exceptions of the new measure, there will not be an automatic sum of 25% on all these products. The final charge will depend on the tariff classification of each commodity and the specific rules applicable to the sector.

Before the decision, data from the Ministry of Development, Industry, Commerce and Services indicated that approximately 46% of Brazilian exports to the United States did not have additional tariffs. Another 25% was subject to the 10% global surcharge, while 29% was covered by Section 232 fees.

Another investigation could raise the tariff to 37.5%. The American government is simultaneously conducting an investigation involving 60 economies, including Brazil. The process evaluates the possible application of an additional tariff of 12.5% ??against countries that, in Washington's view, have not adopted sufficient measures to prevent the circulation of products manufactured with forced labor.

In the Brazilian government's opinion, this rate could be applied alongside the new 25% tariff, increasing the additional charge to up to 37.5% on part of exports.

The sum, however, is not confirmed. The final tariff will depend on the conclusion of the second investigation, the codes of each product and possible exceptions defined by the United States.

PIX, ethanol and deforestation were included in the investigation The Trump administration claims that certain Brazilian policies “encumber or restrict” American trade. The investigation addressed the PIX instant payments system, digital commerce, the protection of intellectual property, the access of United States ethanol to the Brazilian market, the fight against corruption, piracy and illegal deforestation.

According to the USTR, more than 360 written statements were received. Another 77 people gave testimony during hearings held on July 6 and 7.

Representatives of the Brazilian and American governments held meetings over the last year, including in the weeks before the decision, but were unable to reach an agreement.

According to Brazilian interlocutors, the main impasses involved the PIX, the expansion of the entry of American ethanol into Brazil and a proposed four-year moratorium to free digital platforms from taxes and fines. These points are considered non-negotiable by the Brazilian government.

Brazil assesses reaction to tariff President Lula will analyze details of the decision. – Photo: Valter Campanato/Agência Brasil

The Brazilian government analyzes the details of the decision to define how it will react. Among the possibilities discussed are the continuity of diplomatic negotiations and the activation of the Economic Reciprocity Law.

The legislation allows Brazil to adopt tariffs or equivalent restrictions against a country that imposes unilateral barriers considered unjustified. In practice, the mechanism authorizes the Brazilian government to respond commercially in the same proportion.

The United States stated that the tariff could be modified or suspended if Brazil eliminates the questioned practices. The American document also indicates that the charge could be increased if Washington considers that a possible Brazilian reaction has worsened restrictions on United States trade.