US President Donald Trump signed a decree on Friday (20) imposing a 10% tariff on imports from all countries, responding to the Supreme Court's ruling that previous tariffs under the IEEPA law were illegal. The new measure takes effect on February 24 and lasts 150 days, exempting items like beef, oranges, and critical minerals. For Brazil, the global rate improves competitiveness compared to prior reciprocal tariffs of up to 50%.
The US Supreme Court ruled 6-3 that tariffs imposed by Donald Trump under the International Emergency Economic Powers Act (IEEPA) are illegal, as the president cannot impose broad duties without explicit Congressional authorization. Chief Justice John Roberts wrote that the law does not expressly authorize the power to tariff, citing the need for a 'clear Congressional authorization'.
In response, Trump announced and signed an executive order using Section 122 from 1974, which allows tariffs up to 15% for 'fundamental international payments problems', limited to 150 days. The 10% tariff takes effect at 2:01 a.m. on February 24 (Brasília time) and adds to existing tariffs, such as those under Section 232 for national security.
Exemptions include beef, tomatoes, oranges, critical minerals, energy, fertilizers, medicines, electronics, vehicles, aerospace products, books, USMCA-compliant goods from Canada and Mexico, and Central American textiles. Products already under Section 232, like steel and aluminum, remain tariffed.
Trump criticized the court, calling the decision a 'disgrace' and alleging 'foreign interests' influence without evidence. He ordered the USTR to expand Section 301 investigations into 'unreasonable' trade practices, including Brazil since July 2025, potentially leading to new tariffs.
In Brazil, Vice President Geraldo Alckmin stated the new tariff does not affect competitiveness, as it is global, unlike previous 10% + 40% rates only for the country. Benefited sectors include machinery, engines, weapons, textiles, footwear, soluble coffee, and fruits, representing 22% of exports to the US (US$21.6 billion). Steel and aluminum (27%) remain under Section 232. Alckmin noted ongoing negotiations with the US, including strategic minerals and data centers.
The National Confederation of Industry (CNI) estimates a positive impact on 50.9% of US imports from Brazil. Experts note the ruling does not exhaust Trump's trade arsenal, with options like Sections 201, 301, and 338.
