Trump's Tariff Increase: Understand the Changes and How Charges for Brazil Are Affected
The U.S. Supreme Court's decision to overturn Trump's tariff policy raises questions about the impact on Brazilian exports to the U.S.
The U.S. Supreme Court recently ruled to invalidate the tariff increase initiated by President Donald Trump, which has now been followed by the announcement of a new global tariff of 10%. This decision has generated confusion pertaining to how Brazilian exports to the U.S. will be charged under the new tariff regime. Trump's updated tariff structure was unveiled on Saturday, with a plan to increase rates from 10% to 15%, utilizing the provisions of Section 122 of the Trade Act of 1974, which allows for tariffs to be imposed for a maximum of 150 days prior to congressional evaluation.
These new tariffs, set to take effect at 12:01 a.m. Washington time on Tuesday, impact all countries with active trade relations with the U.S., but certain exceptions have been made for critical minerals, agricultural products, and electronic components. The implications of these changes are particularly significant for Brazil as they determine the competitiveness of Brazilian goods in the American market, which is vital for many exporters in the country.
As the Supreme Court's ruling on the 20th of the month annulled the tariffs implemented by Trump under the Emergency Economic Powers Act, Brazilian exporters now face uncertainty regarding pricing and market access. With revised tariffs and the possibility for further changes depending on congressional oversight, Brazilian businesses will need to adapt quickly to the evolving landscape of U.S.-Brazil trade relations, influencing broader economic interactions between the two nations.