The United States government imposed additional 12.5 percent tariffs on Brazilian products, raising the share affected to 47.3 percent of exports to the country, according to the Development Ministry.
On Thursday, July 23, 2026, President Donald Trump announced the new 12.5 percent rate, based on Section 301 and citing failures to combat forced labor. The Development Ministry calculated that the measure, combined with prior 25 percent tariffs and steel and aluminum surcharges, affects 23.1 percent of Brazilian sales exclusively by the new rate, with 16.5 percent subject to the accumulated 37.5 percent.
Brazilian exports to the US declined after a record US$ 40.4 billion in 2024, to US$ 37.7 billion in 2025, and totaled US$ 17.4 billion in the first half of 2026, a 13 percent drop from the same period last year. The ministry attributed the slowdown to reduced shipments of oil and iron and steel products.
The Lula government began proceedings under the Reciprocity Law for possible retaliations, although the final decision depends on studies that may take months. Vice President Geraldo Alckmin stated that retaliation is not sought, but correction of injustices. The National Association of Labor Tax Auditors criticized the US measure for lacking technical basis.
