The US has bumped tariffs on Brazilian imports from 11% to 17.7%, adding fresh strain to one of the Western Hemisphere’s most important trade relationships. And things are about to get considerably worse: a 25% tariff on most Brazilian goods is set to take effect on July 22, 2026, following a yearlong investigation into what Washington calls unfair trade practices.
The tariff math keeps getting uglier
The new 17.7% rate covers a broad range of Brazilian exports to the US, including ethanol, machinery, and apparel. The 25% tariff scheduled for mid-2026 could be layered with an additional 12.5% duty tied to a separate probe into forced labor practices.
Brazil imposed its own 18% tariff on US ethanol back in 2020. The result has been devastating for American ethanol producers, with exports to Brazil dropping 87% since 2018.
Earlier in 2025, the Trump administration had already floated tariffs in the 40-50% range on Brazilian goods, tied to broader political tensions between the two nations.
