News / US rolls back 40% tariffs on Brazilian foods, but industrials still pay the price

© Tatiana Golmer

The US has rolled back the additional 40% duty that had been imposed on a wide range of Brazilian agricultural imports this year, but has left most industrial goods from the country still facing some of the steepest tariffs.

An executive order yesterday modified the tariffs introduced in July, based on “a national emergency” in response to actions by Brazil, which added a 40% ad valorem surcharge on top of existing duties, raising the effective rate on many Brazilian products to up to 50%.

The latest action removes the additional 40% duty from dozens of agricultural lines and applies retroactively to goods entered for consumption on or after 13 November – raising the possibility of refunds.

The move follows a call last month between President Trump and Brazil’s President Luiz Inácio Lula da Silva.

The newly exempted products cover much of Brazil’s agricultural product demand in the US market, nearly identical to the agricultural product list outlined on 14 November, including beef, coffee, cocoa, spices, nuts, cassava and tropical fruits. Also now excluded are etrogs, myrtle branches, communion wafers and other items used for religious purposes.

Despite the large foodstuffs carve-out, the 40% surcharge remains in place for non-agricultural exports from Brazil not covered by Section 232 steel and aluminium protections or other exemptions. That includes vehicles and auto parts, rubber products, many categories of machinery, electrical equipment, chemicals, manufactured steel goods, plastics, wood products, and other industrial and consumer goods. Together, these categories represent several billion dollars in annual Brazil-to-US trade.

For now, the adjustments mark a significant reopening for Brazil’s agricultural shipments, while the heaviest tariff burden has shifted more squarely onto industrial goods.