Which Brazilian Products Will Face the 25% U.S. Tariffs?

The U.S. Trade Representative (USTR) has imposed 25% tariffs on Brazilian products following an investigation that accused Brazil of unfair practices in its financial markets (such as the widespread implementation of the PIX payment system), as well as in its ethanol and agribusiness sectors. Although the U.S. targeted a wide range of Brazilian goods, the official note from the USTR listed over 2,100 HTSUS (Harmonized Tariff Schedule of the United States) product lines that are exempt from the measure.

See Also: US Imposes 25% Tariff on Brazil: Everything You Need to Know

Broadly, exemptions were granted based on four criteria:

1. Raw materials that, if subject to the proposed additional tariffs, could lead to a shortage in domestic U.S. supply.
2. Products that could cause economy-wide disruptions.
3. Certain products that cannot be grown, produced in sufficient quantities in the U.S., or sourced elsewhere.
4. Articles for which additional tariffs may not substantially contribute to the elimination of Brazil’s actionable practices.

According to the Brazilian Minister of Development, Industry, and Trade, Márcio Elias Rosa, the tariffs will affect at least 18% of Brazilian exports to the U.S., amounting to roughly $7.4 billion annually. However, an independent analysis by Brazilian Finance suggests the true impact could be broader, estimating that up to 22% of total exports to the U.S. (or roughly $8.55 billion) will actually face these tariffs. The Minister also highlighted that some impacted products were already subject to prior tariffs. As a result, 24% of these goods could see cumulative tariffs reaching up to 50%, particularly steel, aluminum, and certain automotive manufacturing components.

Which Products Are Exempt from the 25% Tariffs?

Brazilian Finance analyzed the 2,126 lines of exempt products and consolidated them into 52 categories that will avoid this new measure. Most of the items fell under the first justification: “Raw materials that, if subject to the proposed additional tariffs, could lead to a shortage in domestic U.S. supply.” This includes chemical products heavily used in the industrial and pharmaceutical sectors. Under this same rationale, one of Brazil’s most robust industrial ecosystems, as the aviation and aerospace sector, was almost entirely exempted, alongside optical and medical precision instruments with both defense and civil applications.

Agricultural Products

On the agribusiness side, the third justification: “Certain products that cannot be grown, produced in sufficient quantities in the U.S., or sourced elsewhere” was heavily applied. Coffee, tea, cocoa, açaí, fruits, and vegetables are all exempt. Beef and fish products are also excluded from the tariffs; however, chicken and pork products are not.

Minerals

For raw mineral products, virtually every essential mineral is exempt. This includes ferrous metals like pig iron and manganese; base metals such as aluminum, copper, zinc, and nickel; and critical minerals including tungsten, magnesium, cobalt, lithium, titanium, and rare earths.

See also: USA Rare Earth Acquires Western Hemisphere's Largest Rare Earth Mine in $2.8 Billion Brazil Deal

Oil and Energy

Oil and energy equipment are also shielded from the tariffs. Coal, crude oil, LNG (liquefied natural gas), and oil derivatives are exempt, along with clean energy appliances such as solar and photovoltaic equipment.

List of Categories

How Much Will These Tariffs Impact Brazilian Exports?

As noted by Minister Márcio Elias Rosa, the official government estimate is that tariffs will affect at least 18% of Brazilian exports to the U.S., amounting to roughly $7.4 billion annually, though Brazilian Finance data indicates this figure could reach 22% ($8.55 billion).

Brazil’s export mix to the U.S. is heavily concentrated in basic materials, alongside some high-value industrialized products. Both groups will be impacted, but the main sectors facing hurdles are agribusiness (including sugar and biofuels) and industrial manufactured goods. While sugar and biofuels were explicitly cited in the USTR investigation, the tariffs on industrial goods will also impact smaller sectors and producers.

In highly concentrated sectors like arms and munitions, the tariffs strike individual players exceptionally hard. A single company, Taurus Armas S.A. (BVMF: TASA4), accounts for almost all of the $190 million in annual exports in this category, meaning the 25% tax will significantly squeeze Brazilian small arms in their largest international market. For a company still recovering from the heavy tariff shocks of 2025, this new measure represents a far more definitive impact.

In the broader agribusiness sector, beyond sugar and ethanol, key staple commodities such as cotton, soy, and corn could also be impacted, as Brazil is the primary international competitor to the U.S. in these crops. Even though U.S. exports of these commodities can be situational and heavily dependent on weather conditions, listed agricultural companies like BrasilAgro (BVMF: AGRO3) that produce and export them could face new headwinds. Additionally, ethanol and sugar giants like Raízen (BVMF: RAIZ4) and São Martinho (BVMF: SMTO3) will now encounter much steeper barriers when attempting to expand their exports to U.S. markets.

Another heavily affected sector is vehicles, which accounts for nearly $1.8 billion in trade with the U.S. Truck and bus manufacturers, such as Randoncorp (BVMF: RAPT4) and Marcopolo (BVMF: POMO3), could be among the hardest hit; these companies contributed to approximately $600 million in trade with the U.S. in 2025.

Additionally, the heavy machinery sub-sector (bulldozers, graders, and scrapers) generated over $1 billion in trade in 2025. This sector includes export-focused Brazilian factories owned by major American and Asian conglomerates, such as Caterpillar, John Deere, New Holland, and Komatsu, all of which could face significant disruptions.

Of Brazil’s Top Exports, Which Will Face Tariffs?

Looking at 2025 export data, the analysis by Brazilian Finance found that out of the $38.10 billion in total exports to the U.S., 22% will be impacted by the new 25% tariffs. This translates to roughly $8.55 billion in goods, mostly concentrated in iron and steel semi-finished ingots and parts, vehicles, machinery, and cellulose products.