The news: The U.S. will impose a 25% tariff on about $7.4 billion of Brazilian goods this week. The tariffs cover roughly 3,000 products, or about 18% of what Brazil ships to the U.S. Brazil responded with a 13 billion real ($2.5 billion) support package for its affected exporters.
Brazilian imports are an unusual tariff target. The U.S. runs a persistent trade surplus with Brazil. Last year, it sold nearly $42 billion more to Brazil than it bought. That is one of the largest U.S. surpluses with any country. Brazil says 76% of U.S. goods entered duty-free in 2025, at an average applied tariff of 3.1%.
The package: Most of Brazil's support is cheap credit and rural aid.
9 billion reais for farm and rural competitiveness
3 billion reais to refinance company debt
270 million reais in subsidies for sugarcane growers in the northeast
State-bank credit lines priced below Brazil's 14.25% base rate
The exemptions: Washington carved out coffee, beef, oranges and orange juice, and aircraft components. It said those products are not made in the U.S. or that losing them would disrupt supply chains. The exemptions map the Brazilian imports U.S. buyers depend on most.
On countermeasures: Brazil said it would use its 2025 reciprocity law “at the right time,” and is weighing non-tariff options, such as suspending U.S. drug and seed patents and curbing payments to U.S. media companies. It also filed a complaint at the World Trade Organization.
The backdrop: This is lower than the 50% tariff the U.S. imposed on Brazil last year, which was linked to the trial of former president Jair Bolsonaro. Some of those tariffs were later rescinded.
The current action stems from a Section 301 investigation that targets, among other things, Brazil’s free PIX payment system. Brazil’s exports to the U.S. have fallen below 10% of its total for the first time in about two centuries. Officials say they are diversifying toward other markets, including Canada through Mercosur.
What's next: The tariff takes effect this week. Brazil's finance ministry said it would assess the situation before deciding on any countermeasures.
