Brazilian ports brace for export rush as Trump exempts some products from tariff

The list of Brazilian products exempt from the United States’ tariff hike is expected to spark a new “export rush” at Brazilian ports. Amid Donald Trump’s advances and retreats regarding tariffs, products not included in the 50% tax list—such as orange juice, pulp, and oil—are expected to see increased cargo movement in the coming days, according to sources who spoke with CNN.

The first export rush was observed shortly after July 9, when Trump announced the tariffs on Brazilian goods starting August 1. At that time, exporters of coffee, meat, pulp, and other products rushed to ship their products to avoid the measure. Animal protein shipments, for instance, rose by 96% in the first two weeks of last month.

Now, expectations are that exports of exempt products will pick up again. Beyond the lifting of trade barriers, the uncertainty and unpredictability of Trump’s economic decisions are prompting exporters to act quickly to capitalize on the moment without incurring additional surcharges.

The new tariffs on Brazilian products will take effect on August 7. There is not enough time to advance shipments of non-exempt goods, such as coffee, to avoid the charges.

The Ministry of Development, Industry, Trade, and Services (MDIC) explains that import tariffs are applied from the moment goods arrive in the destination country. In other words, if a product is shipped before August 7 but arrives in U.S. territory after that date, the tariff will still apply.

A ship departing from the Port of Santos takes an average of 14 to 18 days to reach major U.S. ports, according to estimates from the Santos Port Authority (APS). Still, certain conditions can extend the journey, such as alternative routes, stopovers, or weather factors, which can take up to 30 days to complete the trip.

Source: CNN

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