Industry News
Brazil Gets Its Own IEEPA Tariffs
TweetJul. 30, 2025
By:
Chaney A. Finn
Proclaiming that actions of the Brazilian government have created a national emergency in the United States, President Trump issued an Executive Order laying tariffs on a huge range of imports from Brazil.
The proclaimed national emergency pertains to, among other things, threats to U.S. national security, foreign policy, and economy, the Government of Brazil’s alleged infringement on freedom of speech of U.S. citizens, and the political persecution of former Brazilian President Jair Bolsonaro, as well as farming practices that lead to deforestation.
As far as the trade is concerned, the order imposes a 40% additional tariff on certain imports from Brazil, with specific exceptions, effective 7 days after the date of the order (August 6 or 7). Notably, this is in addition to the existing 10% baseline rate. The 40% tariff will not be collected where existing 232 duties apply, although reciprocal tariffs will continue to apply the non-232 value of imports. Current antidumping, countervailing orders, or other duties, taxes, fees, exactions and charges continue to apply.
The tariff rate is subject to change as the order allows for adjustments or modifications of current measures, should Brazil retaliate with tariffs on U.S. exports, or “change course” pursuant to the national emergency declared in the order. In addition, because the 40% is separate from IEEPA reciprocal duties it is possible that the total rate for Brazil could change if the 10% reciprocal duties are changed.
Exemptions to the 40% tariff are provided for product-specific, 8-digit subheadings listed in Annex I of the order. However, these products will continue to be subject to the existing 10% baseline tariff. Annex I identifies specific products in the following categories:
- Civil aircraft and parts/components thereof
- Aluminum and related products
- Wood pulp and paper products
- Energy products (e.g., petroleum, fuel)
- Fertilizers
- Orange juice and select agricultural products (nuts, coffee may or may not be exempt depending on source)
- Iron Ore
The order provides in-transit exclusions to merchandise not specified in Annex I if loaded onto a vessel at the port of loading and in transit on the final mode of transit prior to entry into the United States, before 12:01 a.m. eastern daylight time 7 days after the date of this order; and are entered for consumption, or withdrawn from warehouse for consumption before 12:01 a.m. eastern daylight time on October 5, 2025.
Other exclusions apply for regular special trade operations including properly claimed entries of merchandise under HTS chapter 98, and certain goods under HTS heading 9903 such as donations, food, clothing, and medicine.
Should you have any questions regarding tariffs, or have any other trade-related questions, do not hesitate to contact any attorney at Barnes Richardson and Colburn.
References to material for other duties merchandise imported from Brazil may be subject to provided below:
