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Trump's 50% Tariff Hike on Brazil Also Unsustainable for the U.S.

Issued at 2025-07-18



Experts say Brazilian products play a strategic role in U.S. supply chains and consumer markets


Looking at the overall numbers, the Brazil-U.S. trade balance shows a strong surplus in America’s favor. The U.S. is Brazil’s second-largest export market, taking in 12% of its exports. In the opposite direction, Brazil accounts for just 1% of U.S. imports, ranking 18th among its suppliers.

Yet within that 1% are key products for U.S. consumer markets and critical supply chains—suggesting that Trump’s blanket 50% tariff on all Brazilian imports would cripple supply lines, driving up costs and causing losses for American industries.

In agribusiness, for example, Brazilian orange juice makes up 65–70% of all U.S. imports. Brazil is also the top supplier of coffee (20–30% depending on the harvest), as well as 12% of imported cane sugar and 9% of imported beef.

In industrial production, Brazil holds strategic positions in global supply chains. It provides 37% of U.S. cellulose imports—a vital input for paper, diapers, and packaging—and about 20% of pig iron, iron, and steel used in everything from cars and beverage cans to ships and construction. It also ranks among the top five suppliers of aircraft and aircraft parts, particularly via Embraer.

Regardless of the outcome of this or other trade disputes, experts agree that Trump’s tariff legacy carries serious long-term risks for U.S.–Brazil relations.


Source: folha.uol.com.b