US Additional Tariffs Could Affect Over Half of Brazil's Exports to America

Brasilia - More than half of the products Brazil exports to the United States market could be subject to additional tariffs after the US threatened to impose new duties, according to a report released on Monday by the National Confederation of Industry (CNI), the main organisation representing Brazil’s industrial sector. The proposed tariffs could affect 35.2 percent of Brazil’s exports to the US. When combined with existing sectoral tariffs, the total share of Brazilian products facing additional duties could surge to 54.1 percent, CNI said. However, CNI assessed that there will be no immediate impact as the US government plans to hold public consultations and hearings before making a final decision. The new additional tariffs were proposed by the United States Trade Representative (USTR). An additional 25 percent tariff on Brazilian products has been proposed, with exceptions for 1,698 types of goods, including coffee, orange juice, and meat. The USTR also placed Brazil on a list of countries it deems to have failed to adopt or effectively enforce restrictions on imports of goods produced using forced labour, proposing an additional 12.5 percent tariff, with exceptions for 1,655 types of products. If both policies are applied to the same product, the additional tariff imposed could reach 37.5 percent. CNI President Ricardo Alban said the potential tariff increases would not benefit any party. “The tariff increases will raise costs for businesses, reduce competitiveness, and create uncertainty for investment. The most effective path is dialogue, based on technical criteria and the search for solutions that preserve the strategic economic partnership for both countries,” Alban said.