Brazilian producers begin to feel effects of U.S. tariff

Brazilian producers are awaiting meetings and measures from the Brazilian government to reverse or at least minimize the 50% tariff announced by U.S. President Donald Trump on all Brazilian exports to the U.S., effective August 1. For some sectors, the moment is one of concern and waiting; for others, the impacts are already being felt.

The seafood sector is among those immediately affected. According to the Brazilian Association of the Fish Industry (Abipesca), at least 58 containers with 1,160 tonnes of seafood destined for the U.S. lost their buyers and will have to be returned to the producers.

“Shipments scheduled for now would arrive in August. Given the container transit timing, they would already arrive under the new tariff. So, buyers there have suspended purchases, suspended shipments,” said Abipesca’s executive director, Jairo Gund.

According to Gund, the U.S. accounts for 70% of Brazil’s external seafood market. For tilapia alone, the U.S. is the destination for 90% of exports. The containers that had their purchases canceled were frozen products. The fresh seafood market, shipped by air, continues normally.

The most affected are the most vulnerable producers, Gund noted.

“The main export item is lobster. Lobster is often seen as a luxury product, but low-income individuals produce it. It’s artisanal work. So, the impact hits directly this group. It’s not those who eat lobster who suffer — it’s those who produce it. And they are generally people from low-income and traditional communities,” he emphasized.

Abipesca is among the entities that will meet with Vice President and Minister of Development, Industry, and Trade Geraldo Alckmin this Tuesday (15).

The main request will be to delay the tariff for at least 90 days for the sector, allowing already contracted production to be shipped. Additionally, producers will request that seafood be excluded from the tariffs, as Brazil represents less than 1% of U.S. seafood imports, Abipesca added.

“We are in the middle of the main species’ harvest. And with contracts underway,” the association said. “We hope to persuade the U.S. government to remove seafood at least. Because we represent less than 1% of all U.S. supply of everything they import, it’s little for them but a lot for us.”

Awaiting decisions

Citrus producers are also awaiting the next steps.

“We have to be cautious. This tariff is set for August 1. We must let the government take action, mount a defense, and engage in negotiations. I believe a good conversation is much better than a bad argument,” emphasized Antonio Carlos Simonetti, president of the Citrus Sector Chamber of the State of São Paulo and vice president of the Brazilian Association of Table Citrus.

Brazil is the largest supplier of orange juice to the U.S., which buys more than 40% of Brazilian exports.

Simonetti’s production remains unaffected. “Everything is still normal, no alerts, everything is running smoothly for now. We haven’t announced any strategy yet.”

The Brazilian Coffee Exporters Council (Cecafé) is participating in a series of meetings with federal and state governments, trade associations, and lawmakers that began Monday (14). The meetings will continue until Wednesday (16) when Cecafé is expected to present the export performance of the 2024/25 crop year.

See below the main goods exported via containers to the United States in May 2025. The chart was created using DataLiner data:

Top 10 Products Exported by Containers to the United States | May 2025 – TEUs

Source: DataLiner (click here to request a demo)

Industry

In a statement released Monday, the National Confederation of Industry (CNI) warned that the moment “calls for strong, decisive action” to reverse the situation, both domestically and abroad.

“In foreign relations, we need moderation and balance to deal with the U.S. tariff policy. We must negotiate the repeal of the tariff as a partner country and sovereign nation. It is up to the Brazilian government to defend the interests of Brazilian society, especially avoiding the traps of political polarization that this episode brings to the table,” said the confederation.

CNI also emphasized that the tariff jeopardizes investment plans and ongoing business operations.

“The tariff ends the predictability that underpins thousands of long-term contracts, affecting Brazilian factories and U.S. plants that rely on Brazilian-made components and inputs to maintain production lines and jobs. It substantially increases the risk of setbacks, threatening competitiveness on both sides and casting more uncertainty over investment plans and current operations,” the statement added.

Government

On Monday, President Luiz Inácio Lula da Silva announced the creation of the Interministerial Committee on Economic and Trade Negotiation and Countermeasures to adopt measures protecting Brazil’s economy. The group will be established through a decree regulating the Economic Reciprocity Law (Law 15.122/25) and will aim to hear from business sectors to assess the implications of Trump’s announcement imposing 50% tariffs on all Brazilian imports as of August 1.

The committee’s first meeting will take place this Tuesday (15) at 10 a.m. with representatives from the industrial sector. Later the same day, the second meeting will be held with agribusiness representatives.

The decree regulating the Economic Reciprocity Law is expected to be published by Tuesday. Sanctioned in April, the law sets criteria for suspending trade concessions, investments, and obligations related to intellectual property rights in response to unilateral measures by a country or economic bloc that negatively impact Brazilian international competitiveness.

Source: Agência Brasil

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