World Business Report Why will key Brazilian exports escape US tariffs?
Jul 30, 2025
Brazilian exports have surprisingly escaped a hefty 50% U.S. tariff, raising eyebrows in international trade circles. Reactions from Brazil highlight diplomatic tensions and potential economic fallout. Meanwhile, the Federal Reserve's decision to maintain interest rates adds to the U.S.'s economic uncertainty. Insights from the pharmaceutical sector reveal concerns over tariff impacts, with Europe estimating losses up to $19 billion. As industries like tech thrive, the contrast in economic responses to tariffs becomes increasingly apparent.
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Brazil Tariff Exemptions
- Key Brazilian exports like oil, airplanes, and orange juice are exempt from the 50% US tariffs.
- These exempt goods represent about 42% of Brazil's export volume to the US, softening the tariff's overall impact.
Brazilian Export Vulnerability to Tariffs
- 60% of Brazilian exports face impact from 50% US tariffs, including beef, coffee, and sugar.
- Some sectors rely heavily on the US market, making tariffs a significant barrier to trade access.
Brazil's Strategy on US Tariffs
- Brazil is expected to seek tariff exclusions for key sectors and offer trade concessions but won't compromise on judiciary independence.
- Retaliation is a last resort; dialogue with the US is the preferred approach despite political tensions.