On July 9, 2025, President Donald Trump announced a 50% tariff on all imports from Brazil. This decision is partly due to the prosecution of former Brazilian President Jair Bolsonaro and concerns about Brazil's trade practices.
The new tariff rate is a significant increase from the previous 10% duty imposed in early April 2025. President Trump described the trade relationship with Brazil as "far from reciprocal."
U.S. Commerce Secretary Howard Lutnick confirmed the tariffs will take effect on August 1, 2025. This follows a series of tariff-related developments, including a delay from the initially planned July 9 implementation date.
Brazilian aircraft manufacturer Embraer expressed concerns that the new tariffs would increase costs. In the first quarter of 2025, bilateral trade reached a record $20 billion.
Brazilian exports to the U.S. totaled $9.65 billion, and imports amounted to $10.3 billion. This resulted in a $654 million trade deficit for Brazil.
The U.S. administration has indicated further tariff increases are possible if trade negotiations do not progress. President Trump warned that countries failing to secure trade deals by August 1 could face higher tariffs.
As of July 9, 2025, the iShares MSCI Brazil ETF (EWZ) is trading at $28.16, reflecting market reactions to the escalating trade tensions.