USA announces 25% tariff on Brazilian products; see items that will be affected or exempt

See below the main items on the list of exemptions: Beef Coffee Oranges and orange juices Crude oil and natural gas Civil aircraft, engines and aerospace components Pharmaceutical products and chemical ingredients for pharmaceutical use Semiconductors and machines for their manufacture Fish and crustaceans Certain tropical wood products Organic honey Pig iron See below the main items subject to the 25% tariff: Ethanol Agricultural machinery Clothing Electrical machinery Shoes Gardening tools Mining equipment Paper Organic sugar In the trade investigation, Donald Trump's government claims that Brazil adopts practices that "encumber or restrict" trade with the USA, citing issues such as the PIX payment system, access to ethanol trade, illegal deforestation and piracy. (read more below) The 25% tariff will come into force on July 22, but will not be applied to goods that have already left Brazil heading to the USA. Despite the decision, the American government stated that the measure could be modified or suspended if Brazil eliminates the questioned practices. The new charge occurs in a scenario in which part of Brazilian exports was already subject to other tariffs imposed by the USA, mainly in the steel and aluminum sectors. See details in the report below. New tariff adds to previous US measures The application of the additional 25% tariff against Brazilian products is part of a sequence of trade measures adopted by the Donald Trump government since the beginning of 2026. In addition to the new tariff, Washington maintained specific tariffs for certain sectors based on Section 232 of the Trade Expansion Act of 1962, mainly industrial products, such as iron and steel items, aluminum, copper, machinery, equipment, auto parts and vehicles. Section 232 rates vary depending on the product and American tariff classification. In some cases, steel, aluminum and copper products had additional tariffs of 50%, while other derivatives of these metals were subject to specific charges, calculated according to the type of merchandise and the content of these materials. The new tariff announced this Wednesday was created under Section 301 of the Trade Act of 1974, used by the US to investigate and respond to trade practices considered unfair or harmful to American interests. In addition to this measure, the American government is also conducting another commercial investigation that could result in the application of an additional tariff of 12.5% ??on Brazilian products. The charge, planned for 60 economies, is justified by Washington's assessment that these nations did not adopt measures considered sufficient to prevent the circulation of products manufactured with forced labor. In the Brazilian government's assessment, the two measures can be applied cumulatively, which would increase the additional tariff on part of Brazilian exports to the USA to 37.5%. ? The final charge, however, will depend on the rules defined by the USA for each tariff classification and the existence of exceptions or specific treatments for products that were already subject to other measures. Therefore, the application of the new tariff does not necessarily represent an automatic addition of the already existing rates with 25%. Before the new 25% tariff, Brazilian products exported to the USA were already divided into different tariff groups. According to data from the Ministry of Development, Industry, Commerce and Services (MDIC), around 46% of Brazilian exports did not have additional tariffs, while 25% were subject to the 10% global surcharge applied by the USA and 29% were subject to Section 232 tariffs, mainly in the steel and aluminum sectors. Decision increases commercial tension between Brazil and the USA In the Brazilian case, the commercial investigation involved topics such as illegal deforestation, digital commerce and the PIX instant payments system, which, according to the American government, could harm credit card companies. When deciding to apply the new rate, the Trump administration claims that it tried to negotiate with Brazil over the last year, but was unsuccessful in reversing practices that it considers unfair. Members of the Brazilian government state that three themes concentrated the main impasses in the negotiations: the PIX, the expansion of access for American ethanol to the Brazilian market and a proposal for a four-year moratorium to exempt digital platforms from paying taxes and fines. Heard by Valdo Cruz's blog before the publication of the decision by the USTR, interlocutors from the Lula government stated that these points presented by the Americans are considered non-negotiable by Brazil. The assessment is also that the application of the new tariff is a political decision. American authorities, in turn, deny that the reprisal is being used for this purpose. The American government says it seeks to reverse trade practices that harm US competitiveness. With the announcement of the decision, the Brazilian government will analyze the content of the announcement to define what the reaction will be, according to interlocutors at Palácio do Planalto interviewed by Valdo Cruz's blog. Among the possibilities under discussion are the activation of the Economic Reciprocity Law or the continuation of diplomatic negotiations with the Americans. ? The Reciprocity Law is a mechanism that allows a country to apply the same measures, restrictions or tariffs to another nation that it suffered from it. In practice, if a foreign government imposes "unfair" unilateral sanctions or barriers, Brazil uses the norm to react in kind, adopting equivalent restrictions to rebalance relations and protect the economy. Trump tariffs on steel and aluminum: photo shows Mexican parts factory Reuters/Daniel Becerril