Trump's 25% tariff hits Brazil: Trade tensions deepen as billions in exports at risk
A new 25% US tariff on Brazilian goods including farm machinery, wood products, ethanol, and apparel took effect July 22, 2026.
The US exempted major Brazilian imports like beef, coffee, aircraft, and aircraft parts to reduce trade impact.
The tariff is the first under Trump administration’s use of the Trade Act of 1974 Section 301, targeting Brazil despite a US trade surplus.
Brazilian exports worth $7–$11 billion (18–26% of Brazilian exports to the US) could be affected, per Brazil’s government and CNI.
Brazilian Footwear Industries Association (Abicalçados) lowered its export forecast to a 7.1% decline, as the US buys one in five Brazilian shoe exports.
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