In recent days, the U.S. government announced the implementation of two tariff measures against Brazil, raising the cost of Brazilian exports to the United States.
The first measure took effect on July 22, 2026, imposing an additional 25% tariff on certain products originating in Brazil. The measure represents the outcome of an investigation initiated by the United States Trade Representative (USTR) on July 15, 2025, based on Section 301 of the Trade Act of 1974, aimed at investigating Brazilian practices that allegedly restrict U.S. trade. Several products were excluded from the scope of the measure, including certain agricultural and food products, coffee, fuels and minerals, precious metals, computers, pharmaceuticals, and aeronautical items. Products already subject to sector-specific tariffs imposed under Section 232 of U.S. law also remained excluded.
The second measure, implemented on July 23, 2026, stems from an investigation aimed at determining alleged shortcomings in preventing and combating forced labor. According to the U.S. authority, Brazil and 53 other economies have neither established nor adequately enforced mechanisms to prohibit these practices. As a result, an additional tariff of 12.5% was proposed on imports from these countries.
Taken together, the two measures raise the surcharge on a portion of Brazilian exports to 37.5%. The sectors most affected include footwear, machinery and equipment, parts and components, apparel, and certain chemical products.
The Brazilian government contested the findings of both investigations, arguing that the grounds presented by the USTR do not justify the imposition of tariffs. In response to the 25% tariff, it announced the initiation of the procedures provided for in the Economic Reciprocity Act (Law No. 15,122/2025). The eventual adoption of countermeasures, however, will depend on the conclusion of the administrative proceeding and the deliberations of the Interministerial Committee on Negotiations and Economic and Trade Countermeasures. In addition, the Brazilian government announced that it would file a complaint with the World Trade Organization (WTO) to challenge the measures.
Given the recent performance of bilateral trade, the United States was the second-largest destination for Brazilian exports in 2025, accounting for approximately 11% of Brazil’s total export value. Although the macroeconomic impact on the Brazilian economy is likely to be limited, the sectoral and regional effects could be significantly more pronounced, since the surcharges are concentrated on certain industrial segments, affecting more intensely regions whose economic activity depends on these sectors.
