Brazilian exports to the U.S. will see partial relief, as nearly half of the exports are covered by a list of exemptions from the U.S. tariffs.
According to data from the American Chamber of Commerce for Brazil, approximately 43.4% of Brazil’s exports to the U.S., valued at $18.4 billion out of a total $42.3 billion this year, will be exempt from the newly imposed 50% import tariff, as reported by The Rio Times.
Following heightened political tensions with Brazil’s government, the U.S. unveiled a steep tariff hike, but also released a list of 694 products that would be excluded from the new import duties.
Key products exempt from the new tariffs include oil, fuels, iron ore, fertilizers, orange juice, wood pulp, and civil aircraft, which are critical to both the U.S. and Brazilian economies. Fuel exports, valued at $8.5 billion, represent the largest portion of untaxed trade, while Brazilian aircraft worth $2 billion continue to enter the American market.
Iron and steel exports valued at $1.8 billion, along with $1.7 billion in wood pulp, are also exempt from tariffs, safeguarding industries in both countries.
Brazilian coffee and beef, two of the country’s leading export commodities, are now subject to the full 50% tariff. In response, some exporters have halted shipments to the U.S., leading to mounting losses. Machinery exports have already declined by nearly 24%, wood products are down 14%, and many producers of fruits and auto parts are experiencing financial pressure.
Thousands of small and mid-sized U.S. businesses depend on imports from Brazil. The steep tariff increases could raise prices on a wide range of goods, including packaged foods, vehicles, and construction materials.
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