WORLD

Analysis: Brazil’s Oil, Steel and Aircraft Industries to Face Trump Tariffs

Published: Jul. 11, 2025 6:54 p.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

Photo: VCG

(Poder360) ― The Trump administration is set to impose a blanket 50% tariff on all goods imported from Brazil, a move that threatens to disrupt billions of dollars in trade and hit key sectors of the South American nation’s economy, including oil, steel and aerospace.

The tariff, announced by U.S. President Donald Trump, is slated to take effect on Aug. 1. The decision stands to affect a significant trade relationship. Brazil exported $40.4 billion in goods to the U.S. in 2024, accounting for 12% of its total exports.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

The Trump administration will impose a 50% tariff on all Brazilian imports starting August 1, 2025, affecting $40.4 billion in 2024 exports, including key sectors like oil, steel, and aerospace.
The U.S. has also started a Section 301 investigation into Brazil’s trade policies, despite economists disputing the stated U.S. trade deficit with Brazil.
Economists warn of serious negative impacts on Brazil's economy, including inflation and loss to its industrial sector.

AI generated, for reference only

Who’s Who

Poder360: Poder360 is a Brazilian news outlet that originally published an article in Portuguese on July 10. This article, discussing the Trump administration's tariffs on Brazilian goods, was then translated and republished by Caixin Global under a content-sharing agreement.

Austin Rating: Austin Rating is a financial rating agency. Its chief economist, Alex Agostini, disputed Donald Trump's claim of a U.S. trade deficit with Brazil. Agostini stated that official data shows Brazil has run a trade deficit with the U.S. since 2009, calling Trump's justification for tariffs a "lie."

LAM Asset Management: Jason Vieira, chief economist and partner at LAM Asset Management, commented on the US tariff on Brazilian goods. He suggested that the tariff's political underpinnings, specifically linking it to Brazil's prosecution of former president Jair Bolsonaro, make it potentially more prolonged than similar measures taken against other countries.

AI generated, for reference only

What Happened When

2009：: Since 2009, Brazil has run a trade deficit with the United States, according to official data.

2024：: Brazil exported $40.4 billion in goods to the U.S.; this accounted for 12% of Brazil’s total exports. Crude oil and its derivatives exports to the U.S. totaled at least $7.5 billion, or 18.3% of all exports to the U.S. The Brazilian aerospace industry exported $2.7 billion to the U.S.