Listeners, welcome to “Brazil Tariff News and Tracker,” your fast briefing on the shifting trade winds between the United States, Donald Trump, and Brazil.
Let’s start in Washington. The Trump administration’s hard line on Brazil is still casting a long shadow over trade. National Herald India reports that President Trump signed an order authorizing tariffs of up to 50% on some Brazilian imports, by adding an extra 40% on top of an existing 10% baseline tariff. These “reciprocal” tariffs were framed as punishment for what the White House called unfair Brazilian practices and political disputes involving former president Jair Bolsonaro. According to coverage summarized by The Rio Times, those measures hit a mix of industrial and consumer products, prompting Brasília to respond with a multibillion-real countermeasure package aimed at supporting affected exporters.
There has been some recalibration. AOL and the Daily Sun report that the Trump administration later carved out exemptions for many agricultural imports. In particular, non‑native food items were spared the additional 40% duty on Brazilian products. Coffee was the headline example: Brazil supplies roughly a third of U.S. coffee beans, and exempting those shipments from the full 50% tariff wall was designed to keep U.S. consumer prices from spiking even higher. Treasury officials, quoted by AOL, characterized this as a “targeted reset,” keeping pressure on Brazil in manufactured goods while dialing back the hit on food inflation at home.
Even with exemptions, the message from Washington is clear: tariffs on Brazilian industrial goods remain a live tool. Procurement Magazine’s review of 2025’s second quarter notes that Trump’s tariff agenda forced global buyers to rethink sourcing from Brazil, with some U.S. manufacturers diversifying away from Brazilian steel, machinery, and components to hedge against future rate hikes or sudden policy shifts.
On the Brazilian side, President Luiz Inácio Lula da Silva is trying to widen the country’s trade options and reduce dependence on any single partner, including the U.S. The Straits Times reports that Lula is pushing ahead with the Singapore–Mercosur free trade agreement, which would grant tariff‑free access to about 25% of products immediately and phase out tariffs on around 96% of products over 15 years. At the same time, as Euronews and The Brussels Times describe, Lula is urging the European Union to show “political courage” and finalize the long‑pending EU–Mercosur deal, which would lower tariffs on European vehicles and machinery going to South America and ease access for Brazilian meat, sugar, and soy into Europe.
Taken together, listeners, Brazil is responding to Trump’s tariff pressure not only with targeted retaliation, but by racing to lock in alternative tariff‑cutting deals across Asia and Europe. That leaves U.S. exporters and importers watching closely: every new Brazilian agreement that drops tariffs elsewhere slightly erodes U.S. leverage in future negotiations.
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