50% Tariff on Brazilian Imports into the U.S. Takes Effect

Exemptions apply to goods protected under 50 U.S.C. § 1702(b), in addition to specific imports such as energy products, civil aircraft, precious metals, and fertilizers.

The U.S. has imposed a 50% tariff on Brazilian imports to address threats to the U.S. economy by adding a 40% ad valorem duty rate to the existing 10% baseline tariff.

This update was announced in an Executive Order (EO) last week. It applies to all goods entered for consumption, or withdrawn from a warehouse for consumption, on or after 12:01 a.m. EDT on August 6, 2025.

Products of Brazilian imports subject to this updated duty that enter a U.S. foreign trade zone on or after August 6, 2025, must be admitted as privileged foreign status.

The additional 40% tariff comes on top of other duties and charges, including antidumping, countervailing, or other duties, taxes, fees, and exactions.

New Chapter 99 subheadings were established under the Harmonized Tariff Schedule of the United States (HTSUS) to reflect the items subject to the updated tariff on Brazilian imports.

They are outlined in Annex II of the EO, and all HTSUS modifications will be published in the Federal Register.

The U.S. Customs and Border Protection (CBP) has issued guidance on the application of the updated import tariff on Brazil (CSMS # 65807735).

If Brazil imposes reciprocal tariffs or takes further measures, this additional tariff rate may be increased.

Exemptions to the additional 40% tariff

Brazilian goods that are exempt from the additional 40% tariff are listed in Annex I of the EO. 

They include, but are not limited to:

• Energy and energy products
• Civil aircraft and their parts/components
• Precious metals
• Certain silicon metal
• Pig iron
• Metallurgical‐grade alumina
• Tin ore
• Wood pulp
• Fertilizers

For these products, only the 10% reciprocal tariff applies, as outlined in EO 14257, in addition to other applicable duties and taxes.   

Moreover, the additional 40% tariff on Brazilian imports shall not apply to:

• Goods covered by 50 U.S.C. § 1702(b), which include:
  1. Personal communications
  2. Donated articles
  3. Informational materials
  4. Travel-related transactions
• Goods that meet both of the following conditions:
  1. Loaded before the effective date: The goods were loaded onto a vessel at the port of loading and were in transit on the final mode of transit to the U.S. before 12:01 a.m. EDT on August 6, 2025; and
  2. Entered before the deadline: The goods are entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. EDT on October 5, 2025.

Any other goods are subject to the 10% reciprocal tariffs in addition to the new 40% surcharge, bringing the total to 50%.

Next steps for U.S. importers

If you import goods from Brazil into the U.S., we recommend you take the following steps:

• Review your imports to identify any goods of Brazilian origin that may now be subject to the additional tariff
• Check Annex I to determine if any of your goods are exempt from the additional 40% duty
• Confirm shipping timelines for goods already in transit to see if they qualify under the transitional exemption
• Adjust your pricing and sourcing strategies as needed to account for increased costs
• Consult your customs broker to ensure proper tariff classification, documentation, and compliance with CBP requirements

How Cole International can help

At Cole International, we constantly monitor changing trade regulations and offer customs and compliance consulting services to help businesses navigate these changes.

Additionally, we provide timely and efficient customs brokerage services to help U.S. importers streamline their customs clearance and other import processes.

Please reach out to one of our trade professionals to discuss how we can help you identify the correct HTSUS codes and ensure business continuity under this updated tariff framework.