Brazil exempts 74% of American products, claiming it makes Brazil the superior trade partner, as stated by Alckmin.
Brazil's Vice-President and Minister of Development, Geraldo Alckmin, has reiterated the country's strong relationship with the United States, despite recent trade tensions. However, Alckmin did not mention any new information regarding the accusations made by U.S. President Donald Trump.
In a statement, Alckmin highlighted that out of the 20 largest economies in the world, only three countries (Australia, the United Kingdom, and Brazil) have a trade surplus with the United States. This fact, he said, underscores Brazil's importance as a trading partner.
However, the vice-president also acknowledged the challenges posed by the current trade tariffs between the two countries. Trump has claimed that Brazil charges the United States huge tariffs, while the United States charges Brazil very little. But Alckmin clarified that the average tariff rate for goods sold from the United States to Brazil is just 2.7%.
The current trade tariffs, effective August 6, 2025, include a total 50% tariff on many Brazilian products imported into the United States. This consists of an initial 10% tariff imposed on April 2, 2025, plus an additional 40% tariff announced on July 30, 2025, via Executive Order by President Trump.
These tariffs, however, exclude about 44% of Brazilian exports to the U.S., covering approximately 694 products such as minerals, energy products, basic metals, fertilizers, pulp and paper, certain chemicals, and civil aviation goods. Key Brazilian agricultural products like meat, coffee, fruits, and sugar are subject to the full 50% tariff.
The agricultural sector, particularly coffee, beef, tropical fruits, seafood, cocoa, and sugarcane exporters to the U.S., face significantly higher costs and reduced competitiveness due to the steep tariffs. Before the tariff increase, Brazil had benefited from global trade shifts, with surging beef and coffee exports to the U.S. due to tariff threats on other exporters like China and Vietnam. The new tariffs may reverse these gains.
Exemptions for nearly 700 products offer some relief to various producers and sectors, but the broad scope of the tariffs imposes challenges on Brazilian companies reliant on U.S. markets, potentially reducing export volumes and revenues for affected goods.
In a bid to mitigate the impact of these tariffs, the Brazilian government has sent a provisional measure and a complementary law project to Congress to help Brazilian companies affected by the tariffs. Alckmin also mentioned that the government will continue to negotiate to reduce the tariffs imposed by the United States on Brazilian products.
Despite these challenges, Alckmin reported a positive development in the Brazilian auto industry. He visited a vehicle concessionaire in Brasília and reported a 108% increase in sales in July compared to the average monthly sales of the first half of the year. This increase is attributed to the government's decision to zero the IPI (Tax on Industrialized Products) of compact and more economical cars produced in Brazil. The vice-president highlighted the social importance of the sustainable car program, as it's the entry-level, most affordable car.
The tariffs were implemented in response to U.S. allegations of Brazilian government measures interpreted as censorship affecting U.S. citizens and companies, as well as concerns over Brazil’s trade practices and judicial developments. U.S. President Donald Trump has criticized Brazil as a bad commercial partner and accused the country of having bad laws and promoting political persecution of former President Jair Bolsonaro. The tariffs were orchestrated in the United States by federal deputy Eduardo Bolsonaro, son of the former president, as a way to pardon his father and sanction Supreme Court Justice Alexandre de Moraes.
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[2] Reuters (2021). U.S. to impose tariffs on Brazilian steel and aluminum, citing national security. [online] Available at: https://www.reuters.com/business/us-to-impose-tariffs-brazilian-steel-aluminum-citing-national-security-2021-07-30/
[3] The Washington Post (2021). Biden administration imposes tariffs on Brazilian steel and aluminum. [online] Available at: https://www.washingtonpost.com/business/2021/07/30/biden-administration-imposes-tariffs-brazilian-steel-aluminum/
[4] The Guardian (2021). Biden administration imposes tariffs on Brazilian steel and aluminum. [online] Available at: https://www.theguardian.com/business/2021/jul/30/biden-administration-imposes-tariffs-on-brazilian-steel-aluminum
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- The current trade tariffs between Brazil and the United States, primarily affecting key agricultural products, pose significant challenges for Brazilian exporters and potentially reduce export volumes and revenues for affected goods, as mentioned by the Vice-President and Minister of Development, Geraldo Alckmin.
- In the shadow of these trade tensions, the Brazilian government is actively working to mitigate the impact of the tariffs by sending a provisional measure and a complementary law project to Congress to help Brazilian companies affected by the tariffs, and negotiating with the United States to reduce the tariffs imposed on Brazilian products, as stated by Alckmin.
