40% Tariff on Brazilian Products Starts Aug 6

On July 30, 2025, the White House released an Executive Order, Addressing Threats to the United States by the Government of Brazil, which implements a new International Emergency Economic Powers Act (IEEPA) tariff on U.S. imports of certain goods originating from Brazil.

Effective August 6, 2025, a 40% duty rate will be assessed on products detailed in the executive order.

“Recent policies, practices, and actions of the Government of Brazil threaten the national security, foreign policy, and economy of the United States.  Members of the Government of Brazil have taken actions that interfere with the economy of the United States, infringe the free expression rights of United States persons, violate human rights, and undermine the interest the United States has in protecting its citizens and companies.  Members of the Government of Brazil are also politically persecuting a former President of Brazil, which is contributing to the deliberate breakdown in the rule of law in Brazil, to politically motivated intimidation in that country, and to human rights abuses.“ – U.S. President Trump

Details

What products are impacted?

Certain goods of Brazilian origin, listed in the Executive Order.

Duty Rate

The rate of duty shall be assessed at 40% associated with HTSUS 9903.01.77.

Effective Date

This tariff shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on August 6, 2025.

Exemptions

• Goods encompassed by 50 U.S.C. 1702(b)
  • Products that are donations, by persons subject to the jurisdiction of the United States, of articles, such as food, clothing, and medicine, intended to be used to relieve human suffering, except to the extent that the President determines that such donations (A) would seriously impair his ability to deal with any national emergency declared under section 1701 of title 19 of the U.S. Code, (B) are in response to coercion against the proposed recipient or donor, or (C) would endanger Armed Forces of the United States which are engaged in hostilities or are in a situation where imminent involvement in hostilities is clearly indicated by the circumstances.[HTSUS 9903.01.79]
  • Informational materials including but not limited to, publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, compact disks, CD ROMs, artworks, and news wire feeds. [HTSUS 9903.01.80]
• Goods set forth in Annex I to this order, including:
  • Certain silicon metal, pig iron, metallurgical grade alumina, tin ore, wood pulp, precious metals, energy and energy products, and fertilizers. [HTSUS 9903.01.81]
  • Civil aircraft and parts and components thereof, metallurgical grade alumina, tin ore, wood pulp, precious metals, energy and energy products, and fertilizers. [HTSUS 9903.01.82]
• Goods subject to Section 232 tariffs [HTSUS 9903.01.83]
• Goods that (1) were loaded onto a vessel at the port of loading and in transit on the final mode of transit prior to entry into the United States, before 12:01 a.m. eastern daylight time 7 days after the date of this order [August 6, 2025]; and (2) are entered for consumption, or withdrawn from warehouse for consumption before 12:01 a.m. eastern daylight time on October 5, 2025. [HTSUS 9903.01.78]
• Chapter 98 classified goods is exempt, except for goods entered under heading 9802.00.80; and subheadings 9802.00.40, 9802.00.50, and 9802.00.60.  For subheadings 9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply to the value of repairs, alterations, or processing performed, as described in the applicable subheading.  For heading 9802.00.80, the additional duties apply to the value of the article assembled abroad, less the cost or value of such products of the United States, as described. 

Duty Stacking

• This ad valorem duty is in addition to any other duties, fees, taxes, exactions, and charges applicable to such imports.
• Section 232: If the good is subject to existing or future actions under Section 232, then this duty shall not apply. [HTSUS 9903.01.83]
• Reciprocal Tariffs: The reciprocal tariffs shall apply in addition to the ad valorem duty imposed in this order.

FTZ

Any product subject to these tariffs that is admitted into a U.S. foreign trade zone (FTZ) on or after 12:01 a.m. eastern daylight time on August 6, 2025, must be admitted as “privileged foreign” status.

Drawback

Drawback is not mentioned in the Executive Order. Clarification may be forthcoming on this matter.

Future Plans

• The President may modify the order, including if the Government of Brazil retaliates against the U.S. in response to this action by raising tariff rates on U.S. exports, President Trump will increase the ad valorem duty rate by a corresponding amount.
• The Secretary of State shall monitor, and regularly consult with any senior official the Secretary of State deems appropriate on, the situation involving the Government of Brazil.

Have Questions? Contact your local NNR Representative.

We will continue to monitor this tariff action and provide updates as they become available.