Trump Imposes Tariffs On Brazil

On July 30, President Trump signed an Executive Order declaring an emergency with respect to Brazil. Invoking a national emergency, the President has declared that the actions of the Brazilian government pose an unusual and extraordinary threat to U.S. national security, foreign policy, and the economy. The order specifically cites Brazil's coercion of U.S. online platforms to censor American citizens, its violation of free expression rights, and the political persecution of former Brazilian President Jair Bolsonaro. As a result, the proclamation imposes a 40% ad valorem duty on certain products imported from Brazil to address the declared emergency.

Specifically, the executive order sets a 40% IEEPA tariff, effective at 12:01am ET August 6. This is stacked on top of the 10% IEEPA Reciprocal tariff, which results in a 50% tariff. 

There are exceptions for:

• Goods in the Annex at the bottom of the executive order that includes items like orange juice, iron ore, nuts, and aircraft parts.
• For goods in transit on the final mode prior to the effective date and entered before October 5.
• For goods encompassed by 50 U.S.C. 1702(b). 

The tariff does not stack on Section 232 tariffs and the President reserves the right to modify the order based on any changes in circumstances, including retaliation by Brazil.

Brazil’s government estimates that 35.9% of exports to the U.S. by value will be impacted. Local media reported (per Google Translate) that President Luiz Inácio Lula da Silva called an emergency cabinet meeting to discuss a response, but there has yet to be any retaliation announced thus far. The long list of products not being tariffed could help prevent retaliatory actions.

The Executive order can be found here and a fact sheet here.

Please contact Samantha Rocci, Director of Federal Affairs (srocci@rvia.org) with questions.