According to the US government, the tariff increase is based on allegations that Brazilian authorities have been taking measures that could be interpreted as censorship of US citizens and companies. These measures include requests to US digital platforms to block content and provide user data.
The Executive Order5 addresses the stacking order, stating that the new tariff will be applied in addition to existing ones, except for imports subject to Section 232 measures.
The measure excludes 694 products listed in Annex I, roughly representing 44% of the total Brazilian exports to the US in 2024. Exempt items include minerals, energy products, basic metals, fertilizers, pulp and paper, certain chemicals, and goods for civil aviation. Products subject to the new tariff include key agribusiness exports such as meat, coffee, fruits, and sugar. Goods in transit before the seven-day deadline and cleared by 5 October 2025 are also excluded.
The Executive Order also provides that, in the event of retaliation by the Brazilian government, the US may apply a corresponding increase in tariffs.6 On the other hand, it establishes that if Brazil adopts measures deemed appropriate to address the causes of the decision and aligns itself with the US on national security, economic, and foreign policy matters, the order may be reviewed or amended.
On the same day as the Order, the US Treasury’s Office of Foreign Assets Control (OFAC) imposed sanctions against a Brazilian judge who had presided over cases involving American social media companies. The Executive Order also mentions the “persecution” of former Brazilian President Jair Bolsonaro, who has been indicted on charges of corruption.
Exporters should maintain continuous monitoring and strategic engagement in ongoing proceedings, with particular attention to any action by the US government under Section 301 of the Trade Act of 1974. This is a time that requires focus on three fronts: (i) monitoring, (ii) contingency planning, and (iii) identification of opportunities. This is a fast-developing area, and there may be some changes.
1 https://www.whitehouse.gov/presidential-actions/2025/07/addressing-threats-to-the-us/
2 https://truthsocial.com/@realDonaldTrump/posts/114825119138468153
3 https://www.whitehouse.gov/videos/my-fellow-americans-this-is-liberation-day-april-2-2025-president-donald-j-trump-%F0%9F%87%BA%F0%9F%87%B8%F0%9F%A6%85/
4 On 31 July 2025, the US government updated Executive Order 14257, dated 2 April 2025 (Regulating Imports with a Reciprocal Tariff). The 10% tariffs initially imposed on Brazil were maintained. Available at: Further Modifying the Reciprocal Tariff Rates – The White House. Accessed on: 1 August 2025.
5 Considering ComexStat data according to the SH6 codes of the products listed in Annex I of the Executive Order. Case-by-case analysis and alignment of the 8-digit codes would likely reduce the percentage indicated in the text by 2–3 percentage points, in line with other market estimates.
6 "For example, if the Government of Brazil retaliates by raising tariff rates on US exports, I will increase the ad valorem duty rate set forth in this order by a corresponding amount."
