Trade war: Brazil hit hard by 50% US customs surcharge

The relief was only partial. On Wednesday, July 30, U.S. President Donald Trump spared 694 Brazilian products from the 50% tariff surcharges imposed in retaliation for the legal proceedings against his ally , the far-right former president Jair Bolsonaro (2019-2022). But the measure, which came into effect Wednesday, August 6 at 12:01 a.m., still affects 3,800 items, including coffee, meat, fish, furniture, chemicals, textiles, and machinery. According to the Brazilian government, these goods together represent 35% of Brazil's exports to the United States. The latter is the country's second-largest trading partner after China and accounts for 12% of the South American giant's exports.

"We are very concerned," says Frederico Lamego, head of international relations at the National Confederation of Industry. While Brazilian President Luiz Inacio Lula da Silva has made reindustrializing the country one of his priorities during his term, the customs surcharge risks having severe repercussions on the machinery and capital goods sector, which sent 25% of its exports to the United States in 2024. "We export agricultural machinery specifically designed to meet American standards, which makes it impossible to redirect it to other markets," says Lamego.

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