Brazil’s Tariff on U.S. Imports Is Four Times Lower Than Expected

A report by Brazil’s National Confederation of Industry (CNI) found that U.S. products entering Brazil were subject to an effective import tariff of just 2.7% in 2023. This means the actual duty paid on imports from the United States was four times lower than the nominal tariff rate of 11.2%, which Brazil committed to under the World Trade Organization (WTO).

The gap between Brazil’s applied tariff on U.S. imports and the nominal rate is primarily due to special customs regimes, such as drawback programs and ex-tarifário exemptions. The study highlights that products like non-electric engines and machinery, fertilizers, petroleum fuel oils, and natural gas are exempt from tariffs.

See below which were the top ten most imported products from the U.S. in containers registered at Brazilian ports in the twelve months of 2024. The information comes from DataLiner.

Top Imports from US | 2024 | TEUs

Source: DataLiner (click here to request a demo)

The report comes as Brazil’s industrial sector closely monitors shifts in U.S. trade policy, following recent announcements from the White House regarding tariffs and reciprocal trade measures. The United States is the top export market for Brazil’s manufacturing industry, with shipments totaling $159.5 billion between 2019 and 2024. The U.S. is also Brazil’s largest trade partner in services and the leading source of foreign direct investment.

The trade relationship is also highly favorable for the United States, which has maintained a significant surplus in its transactions with Brazil. Over the past five years, the U.S. has accumulated a $58.3 billion trade surplus in goods and services with Brazil. Unlike its trade balances with China, Canada, Mexico, and the European Union, where the U.S. faces deficits, Brazil stands out as a market where the U.S. enjoys a surplus.

“CNI will continue working to strengthen our trade relationship with the U.S., which remains the leading destination for Brazilian manufactured goods,” said CNI President Ricardo Alban. “We will engage with both the Brazilian and U.S. governments to align industry interests and emphasize the mutual benefits of this bilateral trade partnership.”

Source: Agência de Notícias da Indústria 

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