U.S. Imposes Additional 40% Tariff on Brazilian Imports (Updated)

Trade Update • Updated August 5, 2025

Key Points

• The U.S. will add a 40% tariff on most imports from Brazil starting August 6, 2025, raising the total duty on most Brazilian products to 50%.

• This action follows a national emergency declaration due to Brazil’s government actions seen as a threat to U.S. security and economy.

• Major exemptions include aircraft, orange juice, certain metals, and oil products.

• Shipments already in transit before August 6 and entering by October 5, 2025, are exempt from the new tariff.

• CBP Guidance now available.

O

n July 30, 2025, President Donald J. Trump signed an Executive Order imposing an additional 40% tariff on imports from Brazil starting on August 6, 2025. Together with the existing 10% tariff, the total duty on most Brazilian goods will reach 50%. The tariff increase follows the declaration of national emergency caused by Brazil’s government actions, which the U.S. views as an unusual and extraordinary threat to its national security, foreign policy, and economy.

The tariffs respond to actions by Brazil that affect fair trade and create challenges for U.S. companies operating there. They also address concerns about the use of judicial powers that restrict business activities and free expression.

CBP Guidance: Additional Duties on Imports from Brazil

Tariff Scope and Exemptions

The 40% ad valorem duty applies to most imports from Brazil, effective for goods entered for consumption or withdrawn from warehouse on or after 12:01 a.m. EDT, August 6, 2025, unless specifically excluded.

• Civil aircraft, engines, parts, subassemblies, and flight simulators
• Specified iron, steel, aluminum, copper products, and certain passenger vehicles
• Humanitarian donations, such as food, clothing, and medicine
• Informational materials, including publications, films, artworks, CDs, and news feeds
• Industrial goods listed in Annex I of the Executive Order (excluding aircraft)
• Orange juice and Brazil nuts
• Iron ore, pig iron
• Certain oil products and metals already subject to U.S. tariffs

Products covered by Section 232 duties are not subject to the new 40% IEEPA tariff.

Foreign Trade Zones and Chapter 98 Exemptions

• Chapter 98 Provisions:
  Goods entered under valid Chapter 98 entries are exempt from the 40% duty.

  • Exception: Subheadings 9802.00.40 to 9802.00.80 (repairs or assembly) are dutiable only on the value added in Brazil.

• Foreign Trade Zones (FTZs):
  Brazilian goods entering FTZs on or after August 6 must be admitted under privileged foreign status.

  • These goods will be subject to applicable duties upon withdrawal for U.S. consumption.

Additional Trade Measures

Alongside the tariff increase, the U.S. has taken related measures, including:

• Revoking visas of certain Brazilian officials connected to practices affecting U.S. commercial interests
• Applying sanctions and freezing assets related to those officials
• Opening a Section 301 investigation examining Brazil’s trade policies around digital trade, intellectual property, market access, and regulatory practices, which may lead to further trade actions

What Importers Should Do

• Evaluate which Brazilian goods are affected by the new tariffs and exemptions.
• Adjust sourcing and pricing strategies to account for the additional 40% tariff.
• Ensure proper classification of goods under the updated Harmonized Tariff Schedule (HTS) as specified in the Executive Order annexes.
• When submitting entries, report in the correct HTSUS sequence: Chapter 98 (if applicable), followed by Chapter 99 trade remedy codes, and then standard Chapter 1–97 classification.
• Monitor developments in the ongoing trade investigation.
• Consult customs brokers or trade advisors for accurate classification and compliance.

How GHY Can Help?

GHY specializes in helping businesses navigate and reduce the impacts of tariffs through strategic solutions tailored to their needs. Our experts can audit your supply chain to identify inefficiencies, uncover cost-saving opportunities, and ensure compliance with evolving trade regulations. We also employ tariff engineering techniques to optimize product classification and sourcing strategies, minimizing duty exposure and maximizing profitability.

By partnering with GHY, your business gains access to the tools and expertise needed to streamline operations and stay competitive in a challenging trade environment.

Contact Us Today! Booking a Meeting, email consult@ghy.com, or call +1 (800) 667-0771.