New US Tariffs Could Affect 23% of Brazilian Exports

The latest round of U.S. tariffs could affect 23% of Brazilian exports to the United States, according to an estimate from Brazil’s Ministry of Development, Industry, Trade and Services (MDIC). The data also show that 71% of those goods will be hit by both measures, as they also fall within the scope of another 25% U.S. tariff announced last week.

The United States announced on Thursday, July 23, a new tariff targeting 60 economies worldwide. For Brazil, the additional duty will be 12.5%. The official justification is that the countries failed to prohibit imports of goods produced using forced labor.

According to the ministry, 52.7% of Brazilian exports to the United States will not be affected by the additional tariffs announced by Washington and will remain subject only to ordinary U.S. import duties. The category includes coffee, meat, pig iron, aircraft, orange juice, fruit, several chemical products and most pulp exports.

Industry Assesses Impact of US Tariffs on Brazilian Exports

The Brazilian National Confederation of Industry (CNI) estimates that the new tariff will affect 29% of Brazilian exports to the United States, covering 3,900 products. The organization also warns that 80% of those exports will face the combined impact of the additional 25% and 12.5% tariffs.

In the wood sector, for example, 83% of products will face combined additional tariffs of 37.5%. For chemicals, the figure will reach 51% of exports, while 56% of non-metallic mineral products sold to the United States will be subject to the higher duties.

CNI said the current situation calls for intensified negotiations between the two countries to reduce the impact of the US tariffs on Brazilian exports and on Brazilian industry.

Following the announcement of the new tariffs, the Brazilian government rejected the U.S. decision and said the country would activate the mechanisms provided for under its Reciprocity Law, while also taking the issue to the World Trade Organization.

Source: Agência Brasil

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