Do the 25% and 12.5% tariffs apply to the same product?

It depends on the product. Both tariffs have their own distinct exclusion lists. A product may be exempt from one and subject to the other, so the analysis must be done separately for each, based on the good's HTSUS code.

Is the 25% tariff the same one announced in 2025?

No. The tariff announced in 2025 was based on the IEEPA and was tied to the legal proceedings against former President Jair Bolsonaro. It was struck down by the US Supreme Court in February 2026. The 25% tariff currently in effect has a different legal basis (Section 301) and different allegations, of a commercial nature.

Who pays the tariff under an export contract already signed?

It depends on the contractual clauses, especially the Incoterm adopted. In some cases, the cost falls on the importer; in others, on the Brazilian exporter. Ongoing contracts should be reviewed individually to determine whether there's room for renegotiation or the application of force majeure clauses.

Is there any legal strategy to reduce the tariff's impact?

In certain cases, yes. Reviewing the tariff classification (NCM/HTSUS) of the goods and using special customs regimes can be evaluated, always based on a technical analysis of each transaction and each product.

Can Brazil retaliate against these tariffs?

The Brazilian government has signaled its intention to use the instruments provided by the Economic and Trade Reciprocity Law, approved by Congress, in addition to bringing the matter to the World Trade Organization's (WTO) dispute settlement mechanism.

US Tariffs on Brazil: Understanding the 25% and 12.5% Duties on Brazilian Products

Camila Hermano

Jul 29

7 min read