{"id":731,"date":"2026-07-22T16:11:38","date_gmt":"2026-07-22T16:11:38","guid":{"rendered":"https:\/\/officemovingamerica.com\/?p=731"},"modified":"2026-07-22T16:11:38","modified_gmt":"2026-07-22T16:11:38","slug":"new-us-25-tariff-hits-billions-of-dollars-in-brazilian-exports","status":"publish","type":"post","link":"https:\/\/officemovingamerica.com\/?p=731","title":{"rendered":"New US 25% Tariff Hits Billions of Dollars in Brazilian Exports"},"content":{"rendered":"<div>\n<div>\n<p>By Luciana Magalhaes<\/p>\n<\/div>\n<div>\n<p>SAO PAULO, July 22 (Reuters) &#8211; A new 25% U.S. tariff will hit a range \u2060of \u2060Brazilian goods on Wednesday, including farm machinery, wood products, \u2060ethanol and apparel, escalating tensions in an already strained relationship between the two most populous countries in the Western \u200bHemisphere.\u00a0<\/p>\n<p>Read more <a href=\"https:\/\/officemovingamerica.com\/?p=729\">US Quarantined Citizens at New York Military Base After Return From Congo, Sources Say<\/a><\/p>\n<\/div>\n<div>\n<div><\/div>\n<\/div>\n<div>\n<p>The tariff is the first levied under the Trump administration&#8217;s new strategy of using the Trade Act of 1974 to investigate what it considers unfair trade practices. The White House&#8217;s blanket \u200cassertion of emergency powers to levy high tariffs against \u200cmost global partners was struck down by the U.S. Supreme Court earlier this year.\u00a0<\/p>\n<\/div>\n<div>\n<p>The new tariff threatens between $7 billion and $11 billion of Brazilian exports to the U.S., according to \u2060estimates from Brazil&#8217;s government \u2060and National Confederation of Industry (CNI), respectively. That amounts to roughly 18% to 26% of Brazil&#8217;s exports to \u200bthe U.S.<\/p>\n<\/div>\n<div>\n<p>To soften the domestic effect of the tariffs, the U.S. exempted several key imports, including beef, coffee, aircraft and plane parts.\u00a0<\/p>\n<\/div>\n<div>\n<p>Brazil is the first country hit with a tariff after a year-long Section 301 investigation into unfair trade practices, even though the U.S. has consistently had a trade surplus with Brazil.<\/p>\n<\/div>\n<div>\n<p>&#8220;This is the irony of the U.S. measures,&#8221; said Welber Barral, a former Brazilian \u200bforeign trade secretary, noting the bilateral trade balance.\u00a0<\/p>\n<\/div>\n<div>\n<p>Washington has argued tariffs are necessary to counter what it calls unfair trade practices, from electronic payment services \u2060to ethanol \u2060market access and illegal deforestation.<\/p>\n<\/div>\n<div>\n<p>The tariffs \u2060take effect just two days before \u200ba temporary 10% global tariff expires and after a Supreme Court ruling struck down previous 50% U.S. duties on Brazilian goods that forced exporters \u200bto seek new markets.<\/p>\n<\/div>\n<div><\/div>\n<div>\n<p>FOOTWEAR LAYOFFS<\/p>\n<\/div>\n<div>\n<p>For many sectors, the adjustments \u2060have already been painful.<\/p>\n<\/div>\n<div>\n<div><\/div>\n<\/div>\n<div>\n<p>Brazil&#8217;s footwear industry, which counts the U.S. as its top foreign market, has already downgraded its export outlook for the year to an expected 7.1% drop, compared with its previous forecast for a 3.6% drop.<\/p>\n<\/div>\n<div>\n<p>The U.S. buys one in every five shoes exported from Brazil, according to the Brazilian Footwear Industries Association (Abical\u00e7ados).<\/p>\n<p>Read more <a href=\"https:\/\/officemovingamerica.com\/?p=727\">Analysis-Separate US Talks With Canada, Mexico Test North America\u2019s Trilateral Trade Pact<\/a><\/p>\n<\/div>\n<div>\n<p>&#8220;There is no other market capable of replacing the U.S.,&#8221; said Toni Hajel, owner of exporter TH Shoes\u00a0and head of the footwear industry union in Franca, a key hub for footwear production in Sao Paulo state.<\/p>\n<\/div>\n<div>\n<p>He \u2060said about 40% of the area&#8217;s exports, or 650,000 pairs a year, are sold to the U.S. The new tariffs will \u2060make those sales unviable, he added, forcing producers to lay off workers unless Brazil renegotiates the duties or secures a footwear exemption.\u00a0<\/p>\n<\/div>\n<div>\n<p>LONG-TERM CONSEQUENCES<\/p>\n<\/div>\n<div>\n<p>Economists warn that the uncertainty created by successive measures and partial exemptions may have consequences well beyond immediate trade losses.<\/p>\n<\/div>\n<div>\n<p>&#8220;It undermines confidence,&#8221; said Gustavo Pessoa, an economics professor at the Funda\u00e7\u00e3o Getulio Vargas university in S\u00e3o Paulo, who traveled to Washington this month to argue against the tariffs at a public hearing.<\/p>\n<\/div>\n<div>\n<p>Pessoa said the tariffs would hinder long-term trade relations on both sides: U.S. buyers may fear more Brazilian products will be targeted, while Brazilian exporters may not invest in supply chains geared toward the U.S. market.<\/p>\n<\/div>\n<div>\n<p>U.S. tariffs have already hurt bilateral trade, CNI data show, with Brazilian exports to the U.S. down $2.6 billion, or 13% in the first half of this year from the same period of 2025, driven largely by declines in industrial goods such as iron and steel \u2060products, petroleum oils and woodpulp.\u00a0<\/p>\n<\/div>\n<div><\/div>\n<div>\n<p>Brazil is also part of a separate U.S. investigation into forced labor allegations that ends on July 24, which could add another 12.5% tariff, potentially pushing total duties on some goods to 37.5%.\u00a0<\/p>\n<\/div>\n<div>\n<p>The outstanding probe has left Brazilian officials in limbo, with Brazilian Trade Minister Marcio Elias Rosa recently saying he had no idea how the penalty will be implemented, even though he expects it to be confirmed.<\/p>\n<\/div>\n<div>\n<p>&#8220;We will find out \u200bif it will be cumulative or not, whether we will have 25% plus 12.5% or if we will get an exemption,&#8221; he \u200btold reporters in Brasilia.<\/p>\n<p>Read more <a href=\"https:\/\/officemovingamerica.com\/?p=725\">Exclusive-Marco Rubio Tells Diplomats to Play Down Talk of American Tech \u2018Kill Switch\u2019<\/a><\/p>\n<\/div>\n<div><\/div>\n<div>\n<p>(Reporting by Luciana MagalhaesEditing by Brad Haynes and David Gaffen)<\/p>\n<\/div>\n<div>\n<p><b>Copyright 2026 Thomson Reuters<\/b>.<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>US News is a recognized leader in college, grad school, hospital, mutual fund, and car rankings. 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