Trump tariff hike: despite new exemptions, two-thirds of Brazilian exports remain taxed, says CNI

With the new list of Brazilian products exempt from the 40% tariff, around 37% of Brazil’s exports to the United States — valued at around USD 15.7 billion — will now enter the American market without the extra charge. The assessment is made by Frederico Lamego, Superintendent of International Relations at the National Confederation of Industry (CNI), based on 2024 data.

Even so, 63% of shipments remain subject to the expanded tariffs in effect since July, especially those from the industrial sector.

Lamego classifies the measure’s effect as mixed and says that negotiations between Brasília and Washington are now entering a decisive phase.

“The order published yesterday complements that of November 14, expanding to 238 the number of products exempt from the additional 40% tariff,” he says.

The list includes coffee, meat, fruit, Brazil nuts, fertilizers, and agricultural inputs. Despite this progress in part of agribusiness, Lamego points out that most manufactured goods remain subject to the tariff hike and face relevant barriers in the American market.

“Machinery and equipment, furniture, leather, footwear, aviation, some oils, carnauba wax, and minerals such as vermiculite continue to face additional costs to enter the American market,” Lamego stresses.

In addition, he notes that aviation, for example, operates with a 10% rate, a relevant disadvantage compared with the agreement that eliminates tariffs between the US and the European Union.

Progress in negotiations
Even so, the superintendent highlights that the mention of negotiations with Brazil — the first since the tariff hike in July — represents an important diplomatic signal.

“The gesture indicates Washington’s goodwill to advance the talks and also reflects the US government’s concern with domestic inflation, which pressures for solutions that reduce import costs.”

Commenting on the possibility of entering new markets amid tariffs, Lamego observes that, for several industrial segments, the impact extends beyond increased costs.

This is because regulated products, such as machinery and equipment, cannot always be easily redirected to third markets. “Which hinders outflow, reduces margins and weakens companies’ bargaining power,” he says.

The superintendent states that CNI is preparing a study to map whether the affected sectors are managing to offset losses through sales reallocation.

In addition, he reinforces that the Brazilian government is committed to seeking a solution, and that the US expects a robust proposal that goes beyond the tariff discussion.

“CNI presented the Brazilian government, about two weeks ago, with a subsidy proposal to mitigate the most urgent effects while negotiations advance,” he says.

Lamego acknowledges that initiatives such as the “Acredita Exportação” program may bring some relief, but emphasizes that it is a temporary response. “Although the plan provides breathing room, the most important thing is that negotiations move forward as quickly as possible so that the issue is definitively resolved.”

Brazilian products under US tariff hike

Exceptions since the beginning (30/Jul)
🧃 Orange juice
✈️ Civil aircraft
⛽ Fuels
🧪 Fertilizers
⛏️ Ore

Removed from the list (20/Nov)
🥩 Beef
☕ Coffee
🍵 Tea
🍅 Tomato
🍐 Fruit
🥤 Juices
🍫 Cocoa

Still taxed
🏭 Machinery
👟 Footwear
🪑 Furniture
🍯 Honey
🐟 Fish

Source: G1

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