Trump tariff shake-up: what it means for Brazilian exports to the U.S.

The U.S. Supreme Court’s decision to strike down President Donald Trump’s sweeping tariff package — followed by Trump’s announcement of a new 15% global tariff — has reshaped the landscape for Brazilian exports to the United States.

The court ruled Friday (20) that Trump improperly used the International Emergency Economic Powers Act (IEEPA) to impose broad-based tariffs. The decision voided the 10% “reciprocal” tariffs introduced in April 2025 and a 40% surcharge applied to a range of Brazilian goods later that year.

However, just one day later, Trump unveiled a new temporary global tariff — initially set at 10% and then raised Saturday to 15% — under Section 122 of the Trade Act of 1974. That provision allows the president to impose tariffs for up to 150 days without prior congressional approval.

The new measure, which took effect at 12:01 a.m. Washington time Tuesday, applies to virtually all U.S. trading partners, with exemptions for certain critical minerals, agricultural goods and electronic components.

What Happens to Brazilian Goods?

In practical terms, the Supreme Court’s ruling eliminated the IEEPA-based tariffs — including the 10% reciprocal levy and the 40% surcharge on Brazilian products.

Under the new framework, Brazilian goods are subject to the standard pre-2025 tariff rates plus the newly announced 15% temporary global surcharge.

“For most products, the normal tariff remains in place, now with an additional temporary 15% global duty,” said Jackson Campos, a foreign trade specialist.

Brazilian steel and aluminum exports remain subject to separate 50% tariffs imposed under Section 232 of U.S. trade law. Those rates are unaffected by the Supreme Court decision and are now layered with the 15% surcharge, keeping overall duties elevated for those sectors.

Timeline of the Tariff Escalation

• April 2025: Trump introduces a 10% “reciprocal” tariff on Brazilian imports.
• June 2025: Steel and aluminum tariffs raised to 50% under Section 232.
• July 2025: Additional 40% surcharge imposed on various Brazilian goods, with broad exemptions.
• November 2025: After negotiations with President Luiz Inácio Lula da Silva, the U.S. removes the 40% surcharge from additional items, including coffee, beef and fruit.
• Feb. 20, 2026: Supreme Court invalidates use of IEEPA for broad tariff actions, eliminating the 10% reciprocal tariff and 40% Brazil-specific surcharge.
• Feb. 20, 2026: Trump announces a temporary 10% global tariff under Section 122.
• Feb. 21, 2026: Global tariff increased to 15%.

Brazilian Government Welcomes Ruling

Vice President Geraldo Alckmin, who also serves as Brazil’s development minister, welcomed the Supreme Court decision, saying it restores competitive parity for Brazilian exporters.

After Trump raised the global tariff to 15%, Alckmin argued that the uniform rate does not undermine Brazil’s competitiveness.

“Even at 15%, since it applies equally to all countries, we do not lose competitiveness,” he said, noting that some sectors now face zero additional tariffs, including fuel, beef, coffee, pulp, orange juice and aircraft.

Alckmin added that the ruling opens room for further negotiations during President Lula’s planned visit to Washington in March, including discussions beyond tariffs.

Before the court’s intervention, about 22% of Brazilian exports to the United States were subject to the 40% surcharge, Alckmin said.

According to Brazil’s National Confederation of Industry, citing 2024 data from the U.S. International Trade Commission, the Supreme Court’s decision affects approximately $21.6 billion in Brazilian exports to the U.S., marking a significant recalibration in bilateral trade relations.

Source: G1

Sharing is caring!