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Home Sector Logistics White House announces additional 40 percent trade tariff on Brazil, raising total to 50 percent

White House announces additional 40 percent trade tariff on Brazil, raising total to 50 percent

Despite the tariffs, the U.S. continues to enjoy a trade surplus with Brazil
White House announces additional 40 percent trade tariff on Brazil, raising total to 50 percent
U.S. president imposes additional 40 percent tariff on Brazil.

The White House announced that U.S. President Donald Trump has signed an executive order imposing an additional 40 percent tariff on Brazil, bringing the total tariff value to 50 percent. In a statement, the White House attributed President Trump’s decision to recent Brazilian policies which the U.S. administration does not approve of. The statement also indicated that President Trump signed a declaration imposing tariffs on copper imports, citing national security considerations. The declaration imposes a 50 percent tariff on semi-manufactured copper products and copper-intensive derivatives, effective from August 1.

Earlier this month, the Brazilian government announced it is evaluating multiple options in response to the sanctions imposed by the United States, including the potential restriction of dividend distributions transferred from U.S. companies operating within Brazil.

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(Photo Credit: Qatar News Agency)

This 50 percent tariff represents one of the highest rates imposed by the United States on any country. The tariffs exclude several key Brazilian exports such as civil aircraft, energy, orange juice, iron, metals, pulp, and fertilizers, attempting to soften the economic impact on vital sectors.

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Read more: U.S. reduces tariff on South Korean imports to 15 percent, down from 25 percent

U.S.-Brazil trade surplus explained

The economic context shows that despite the tariffs, the U.S. actually holds a trade surplus with Brazil, exporting more to Brazil than it imports. Following the tariff announcement, shares of key Brazilian exporters such as Embraer (aircraft manufacturing) and Suzano (pulp producer) saw gains, reflecting relief from the exclusions granted in the tariffs.

As for official data, Brazil’s trade surplus with the United States was assessed at approximately $284 million in 2024, indicating that the U.S. trade deficit claim used to justify these tariffs is inaccurate. The White House executive order and supporting legal documents detail the tariff imposition under national security grounds, along with exemptions for certain products, and modifications to the Harmonized Tariff Schedule.

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