Almost 50% of U.S. Exports to Brazil Enter Tariff-Free, Says Trade Group

The American Chamber of Commerce for Brazil (Amcham Brasil) reported on Friday (14) that 48% of U.S. exports to Brazil enter without tariffs. Additionally, about 15% of U.S. imported goods face no more than 2% tariffs.

“Although Brazil’s nominal average tariff for global trade is 12.4%, the weighted effective average tariff on U.S. imports is only 2.7%,” Amcham Brasil stated.

According to the organization, this difference in average tariff rates is due to the high share of U.S. products with zero tariffs on Brazilian imports, such as aircraft and their parts, crude oil, and natural gas.

Amcham Brasil also highlighted that the 2.7% average tariff rate is a result of special customs regimes—such as drawback, ex-tarifário, and Recof—that reduce or eliminate import taxes on goods from the United States.

Data from the organization shows that between 2014 and 2023, the U.S. accumulated a $263.1 billion trade surplus in goods and services with Brazil. In 2024, the trade surplus in goods for the U.S. reached $7.3 billion.

“The economic and trade relationship between Brazil and the United States is balanced and beneficial for both countries’ businesses, workers, and consumers. The high complementarity and intra-firm profile of bilateral trade make the U.S. a reliable and competitive supplier for the Brazilian productive sector, just as Brazil is for American companies,” stated Amcham Brasil.

Reciprocal Tariffs

U.S. President Donald Trump announced on Thursday (13) that his administration will implement new comprehensive reciprocal tariffs on all countries that impose import taxes on U.S. goods.

The White House initiative aims to identify and counteract non-reciprocal trade measures, including tariffs, non-tariff barriers, discriminatory taxes, and subsidies.

In announcing the policy, Trump specifically mentioned Brazilian ethanol, arguing that there is an imbalance in the product trade.

“The U.S. tariff on ethanol is only 2.5%. Yet, Brazil imposes an 18% tariff on U.S. ethanol exports. As a result, in 2024, the U.S. imported over $200 million in ethanol from Brazil, while U.S. ethanol exports to Brazil totaled only $52 million,” Trump stated in a document released following the memorandum on reciprocal tariffs.

Source: CNN Brasil

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