Economy

Brazilian Exporters Run Out of Time to Beat U.S. Tariffs Ahead of August Deadline

Jul, 23, 2025 Posted by Lucas Lorimer

Week 202531

Brazilian companies exporting to the United States can no longer ship goods in time to avoid the 50% tariffs imposed by Donald Trump, set to take effect on August 1st.

As soon as the White House announced the 50% tariff on Brazilian products on July 9, exporters of coffee, meat, pulp, and other goods rushed to move shipments early to beat the measure. Shipments of animal proteins, for example, surged by 96% during the first two weeks of the month.

That strategy, however, had a short shelf life: there is no longer enough time to get the goods into the U.S. before August 1, the date Trump set for the tariff hike to begin.

According to technical staff at the Port of Santos, a vessel carrying cargo to major U.S. ports typically takes 14 to 18 days to complete the trip. So even if shipments were dispatched on Tuesday (22nd), they would not arrive before the deadline, leaving no escape from the new tariff.

Brazil’s Ministry of Development, Industry, Trade and Services (MDIC) explains that import tariffs are applied at the moment goods arrive in the destination country. That is, if the shipment leaves before the tariff takes effect but arrives after, the tax is still charged.

See below a historical overview of Brazilian container exports to the United States starting from January 2022. The chart was created using DataLiner data:

Brazilian Container Exports to the United States – Jan 2022 to May 2025 – TEU

Source: DataLiner (Click here to request a demo)

In addition to the average transit time from the Port of Santos to the U.S., other conditions can make the journey even longer, according to sources—such as alternative routes, stopovers, or weather-related delays.

In the case of Brazilian coffee, more than 70% of exports to the U.S. leave from the Port of Santos. Of that amount, about 30% arrives via the Port of New Orleans and around 15% through the Port of New York. Travel time on those routes can take up to 30 days.

Other strategies

With Trump’s tariff hike imminent, producers are now betting on dialogue with American companies and exploring other strategies. One example is Johanna Foods, a juice importer based in New Jersey, which has filed a lawsuit in U.S. courts against Trump’s measure.

In another effort, U.S. trade groups and companies are evaluating whether to propose a list of exceptions to the 50% tariffs. The idea would be to request lower tariffs for natural products not produced domestically in the U.S.

One of the groups leading this effort is the National Coffee Association, the primary coffee industry body in the U.S. Coffee would be the largest beneficiary of such an exemption, as nearly all the coffee consumed in the U.S. is imported. Brazil is the country’s largest supplier, accounting for about 35%—more than a third—of all coffee imported by the United States.

Other sectors, such as the fruit industry, could also benefit from an exceptions list. A prime example is mangoes: U.S. domestic production is nearly nonexistent, and Brazil is the country’s third-largest supplier, responsible for roughly 8% of mango imports.

Source: CNN Brasil

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