U.S. 40% Tariffs on Brazil: Details & Actions To Take

US imposes 40% tariffs on Brazilian imports over political interference. Customs pros must act fast to manage compliance and costs.

U.S. President Donald Trump has declared a national emergency over Brazil’s recent political and economic actions, imposing a 40% tariff on many Brazilian imports. This executive order targets Brazil’s interference with U.S. companies, free speech, and political stability. Customs and trade compliance professionals must understand how this affects imports, duty calculations, and trade strategy.

Arne’s Takeaways

This tariff increase is a significant change for importers dealing with Brazil. It impacts duty rates and customs valuation. The order reflects broader geopolitical risks affecting trade. Stay alert and adjust your customs compliance strategies accordingly.

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Key Questions Covered in This Blog

• What are the new U.S. tariffs on Brazilian imports?

• Why were these tariffs imposed?

• Which products are affected and which are exempt?

• How will this impact customs compliance and import costs?

• What can importers and compliance officers do to prepare?

  
  

Abbreviations Used in This Blog

• IEEPA: International Emergency Economic Powers Act

• NEA: National Emergencies Act

• USTR: United States Trade Representative

• CBP: U.S. Customs and Border Protection

  
  

“Trade compliance requires staying ahead of political developments that disrupt supply chains and duty structures.”— Arne Mielken, Managing Director, Customs Manager

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What Are the New U.S. Tariffs on Brazilian Imports?

The U.S. has imposed a 40% additional ad valorem duty on most Brazilian products entering the U.S. customs territory. This tariff applies to goods entered or withdrawn for consumption from seven days after the July 30, 2025, order. Some products like silicon metal, pig iron, certain aircraft parts, and fertilizers are exempt.

This tariff is in addition to existing tariffs but does not stack with Section 232 duties (national security-related tariffs). U.S. Customs and Border Protection (CBP) will enforce these changes. Imports admitted into foreign trade zones must enter as “privileged foreign status,” impacting duty deferral benefits.

Download Executive Order

Addressing Threats to The United States by the Government of Brazil – The White House.pdf

Download PDF • 1.66MB

Why Were These Tariffs Imposed?

The executive order cites Brazil’s government actions as threats to U.S. national security, foreign policy, and economic interests. Key issues include:

• Brazilian officials forcing U.S.-based social media companies to censor U.S. citizens' speech protected by the First Amendment.

• Abuse of judicial authority in Brazil to intimidate political opponents, including targeting a U.S. resident for lawful speech.

• Political persecution of former Brazilian President Jair Bolsonaro, undermining rule of law and fair elections.

These actions are seen as hostile interference that harms U.S. companies and citizens and violates democratic principles.

Which Products Are Affected and Which Are Exempt?

The order specifies numerous products affected by the 40% tariff, but also lists exemptions. Key exemptions include:

Exempt Products	Notes
Silicon metal	Industrial raw material
Pig iron	Base metal
Civil aircraft and parts	Aviation sector
Metallurgical grade alumina	Refined industrial mineral
Tin ore	Raw mineral
Wood pulp	Paper industry raw material
Precious metals	Precious metals and alloys
Energy and energy products	Fuels and related products
Fertilizers	Agricultural inputs

Check the detailed Annexes of the executive order for precise tariff codes and definitions.

How Will This Impact Customs Compliance and Import Costs?

• Increased Duty Costs: The 40% additional tariff will significantly raise the landed cost of Brazilian imports, squeezing margins.

• Customs Valuation: Importers must factor in the new ad valorem duty alongside existing duties, excluding Section 232 tariffs to avoid stacking.

• Foreign Trade Zones: Imports of subject articles admitted post-order must have “privileged foreign status,” reducing some duty deferral opportunities.

• Customs Procedures: CBP is authorized to take all necessary steps to enforce and administer these duties. Customs brokers and compliance teams must update software and procedures promptly.

Importers will need to reassess sourcing, pricing, and compliance controls to absorb or mitigate cost increases.

What Can Importers and Compliance Officers Do to Prepare?

Practical Expert Recommendation: Stay informed and review your Brazil supply chains now.

• Audit current imports from Brazil for tariff classification and valuation.

• Assess your exposure to the new 40% tariff and related compliance obligations.

• Engage with customs brokers and legal advisors to update import processes.

Next Steps for Customs Professionals

1. Communicate tariff changes to procurement and finance teams to adjust cost forecasts.

2. Train customs clearance staff on new duty rates and exemptions.

3. Monitor official CBP guidance for procedural updates.

4. Explore alternative suppliers or materials to reduce tariff impact.

5. Stay alert for potential retaliatory measures from Brazil, which could affect U.S. exports.

Summary

• U.S. imposed 40% additional tariff on most Brazilian imports due to political and economic interference.

• Tariffs exclude certain raw materials and critical sectors.

• Impact on customs valuation, compliance, and landed costs is significant.

• Customs and trade compliance officers must update processes immediately.

• Proactive supplier and cost management is essential to navigate disruptions.

Sources & Further Information

• White House Executive Order July 30, 2025

  
  

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Disclaimer

This article provides general information only. It is not legal or professional advice. Consult qualified experts before making compliance decisions. We accept no liability for reliance on this content.

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