🇧🇷

Brazil

No retaliatory measures

Brazil is Latin America's largest economy and one of the few major trading partners where US trade is roughly balanced — the $4.1 billion surplus actually slightly favors the US. This balance earned Brazil the minimum 10% reciprocal tariff rate, though even this modest increase impacts key commodity flows.

💡
The 10% tariff on Brazil goods — up from 1.5% before 2025 — adds an estimated $4.0B in annual tariff taxes on $40.4B of imports. American consumers pay this cost through higher prices on Crude Oil and Coffee.

Current Tariff

📊

10%

Was 1.5%

US Imports

📥

$40.4B

2024 total

US Exports

📤

$44.5B

2024 total

Trade Balance

⚖️

$4.1B

US surplus

Trade Flow (2024)

Tariff Rate Change

📈 5-Year Import Trend

📋 Trade Relationship Analysis

Brazil is Latin America's largest economy and one of the few major trading partners where US trade is roughly balanced — the $4.1 billion surplus actually slightly favors the US. This balance earned Brazil the minimum 10% reciprocal tariff rate, though even this modest increase impacts key commodity flows.

Brazil's commodity exports are essential to American industry: crude oil from Petrobras, iron ore for steel mills, coffee for the $100 billion US coffee market, and soybeans that compete with (and sometimes replace) US domestic production. When China retaliates against US soybeans, American farmers lose markets — and Brazilian farmers gain them, creating a complex triangular trade dynamic.

Embraer is the crown jewel of Brazilian exports: the company's E-175 and E-195 regional jets are workhorses for American Airlines, United, and Delta's regional operations. A 10% tariff on aircraft adds millions per plane, potentially shifting airline orders or accelerating Embraer's plans to increase US-based assembly.

Brazil has been largely cooperative, not retaliating despite having tools to do so. President Lula has used the tariff situation to strengthen ties with China, India, and the BRICS bloc — a geopolitical shift that concerns Washington. The agricultural relationship is deeply interdependent: Brazil supplies coffee, orange juice, and beef, while the US sells corn, wheat, and chemical inputs.

Tariff Impact

Pre-2025

1.5%

Current

10%

Increase

+8.5%

🏷️ Top Imported Products

ProductTariff RateImport ValuePrice Impact
Crude Oil (Petrobras)10%$8.6B+$2-4 per barrel
Coffee (Santos, Minas Gerais)10%$3.2B+$0.50-1.00 per bag
Regional Aircraft (Embraer)10%$4.8B+$3-5M per aircraft
Iron Ore & Steel10%$5.4B+5-8% per ton
Soybeans & Soy Products10%$2.1B+8-12% per bushel
Orange Juice Concentrate10%$1.8B+$0.30-0.50 per carton

📅 Tariff Timeline

2004US steel tariffs affect Brazilian steel exports (Section 201)1.5%
2018Section 232 steel and aluminum tariffs imposed on Brazil25%
2020Brazil agrees to steel export quotas; Section 232 partially lifted1.5%
202510% minimum reciprocal tariff applied10%

🎯 Retaliation — US Products Targeted

✅ No Retaliation
US Product TargetedUS Exports at RiskEstimated Loss
No retaliation — Brazil maintaining cooperative stanceN/AN/A

💡 Did You Know?

  • Brazil supplies roughly 25% of America's coffee — tariffs literally raise the price of your morning cup
  • When China tariffs hit US soybeans, Brazil captures the Chinese market, creating a trade war ripple effect
  • Embraer regional jets operate 60% of all US regional airline flights
  • Brazil's Petrobras deep-water oil fields are among the most productive in the world, reducing US OPEC dependence

Key Product Categories

Crude OilCoffeeAircraftSoybeansIron Ore