U.S. Increases Tariffs on Brazilian Imports to 50% from 10%

**Updated on August 1, 2025: CBP has issued CSMS # 65807735 - GUIDANCE – Additional Duties on Imports from Brazil

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President Trump signed an Executive Order today, July 30, 2025, implementing an additional 40% tariff on Brazilian products, bringing the total tariff amount to 50%. This will be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET August 6, 2025.

The Trump Administration said its reason for the tariff increase is due to “recent policies, practices, and actions by the Government of Brazil that constitute an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States.”

Here is the Executive Order where the President lays out the new tariff.

See the White House Fact Sheet regarding this Executive Order here.

While this 40% tariff will have a significant impact on a number of imports from Brazil, there are several exceptions to the applicability of this tariff. Below is a summary of those exceptions and other significant details from the order:

Exceptions to the Tariff

Goods in transit that were loaded on to a vessel at the port of loading and in transit on the final mode of transit prior to 12:01 a.m. ET Aug. 6, AND were entered for consumption, or withdrawn from warehouse for consumption before 12:01 a.m. ET on Oct. 5, 2025, the tariffs will NOT apply.

Goods provided for in 50 U.S.C. 1702(b) , i.e. any postal, telegraphic, telephonic, or other personal communication; donations of food, clothing and medicine intended to relieve human suffering; merely informational materials; any transactions ordinarily incident to travel to or from any country, including importation of accompanied baggage for personal use.

Goods in Annex I, which includes a wide variety of goods such as silicon metal, pig iron, civil aircraft, Brazil nuts, orange juice, some energy products, wood pulps, certain paper, etc. (see link above for details and Annex).

Goods subject to section 232 actions, which would currently include steel, aluminum, autos & parts, and now copper (effective Aug. 1).

Stacking of tariffs

• The IEEPA reciprocal tariff will also apply to any goods subject to the new 40% rate for a total of 50% tariff above the MFN rate of due.

FTZ Goods

• Products admitted to an FTZ after 12:01 a.m. ET on Aug. 6, must be admitted as privileged foreign status.
• Goods eligible for admission to an FTZ under domestic status are exempt from the tariffs

Future Modifications (Increase or Decrease)

INCREASE

o  If a country retaliates against U.S. goods as a result of these tariffs, the President may increase or expand the scope of the tariffs.

DECREASE

o  If a country remedies the non-reciprocal trade arrangements, the President my decrease or limit the scope of the tariffs.

Duty Drawback

At this time, there is no express prohibition to claiming duty drawback on these tariffs.

Severability

If any provision of the E.O. is held to be invalid, the remainder of the order will remain in place and not be affected.

In addition, the Office of the U.S. Trade Representative (USTR) on July 15 initiated an investigation of Brazil under Section 301 of the Trade Act of 1974. The investigation will seek to determine whether acts, policies, and practices of the Government of Brazil related to digital trade and electronic payment services; unfair, preferential tariffs; anti-corruption interference; intellectual property protection; ethanol market access; and illegal deforestation are unreasonable or discriminatory and burden or restrict U.S. commerce.