United States President Donald Trump of all Brazilian products… except 694 items. By far, one sector had the largest number of excluded items: there are 565 civil aviation articles included in the list. The most benefit of this is Embraer, of course, but the company still advocates the return to the zero tariff rule for the aerospace industry.
The Brazilian aircraft producer would be one of the main affected by the increase in tax, as the United States is the destination of most sales of the company. Now, the exports of the Brazilian manufacturer remain with a 10%tariff.
Aerial vehicles accounted for 5.9% of Brazil’s total exports to the United States in 2024. Americans were responsible for buying 63.2% of US $ 3.8 billion of aircraft exported last year. Suffice it to say that about 60% of Embraer’s sales are destined to the United States to understand how the company reflects the impact on the trade balance.
Take your business to the next level with the help of the country’s leading entrepreneurs!
Trump’s signed document highlights which exceptions include only engine aircraft engine, parts and components. The list of more than 500 items goes from tubes, pipes and hoses of ethylene polymers to turbines and the aircraft themselves.
In recent weeks, Embraer CEO Francisco Gomes Neto has been with US government high -ranking authorities to argue for Trump’s application of tariffs in early July. The company estimated that a 40% increase over 10% tariffs already announced previously by Trump.
In a statement, the company said the exclusion of its export items from the list “confirms the positive impact and strategic importance” of its activities for the economies of Brazil and the USA. “We continue to believe and firmly defend the return to the zero fare rule to the global aerospace industry,” the note said.
Continues after advertising
Embraer’s latest commercial jet request notes 336 firm orders, of which 181 come from US operators.
Cellulose, animal protein, coffee and orange juice
Another sector that partially benefited from the exceptions made by the US government was wood and derivatives, whose US participation in Brazil exports represented 43.2% in 2024. Items were excluded from the list such as eucalyptus short fiber pulp responsible for the higher proportion of these exports.
Who celebrates is Suzano, who saw 16.6% of revenues in 2024 coming from North America, almost everything from the United States, and produces exactly the eucalyptus short fiber cellulose. It is estimated that about 80% of this product consumed in the US has Brazilian origin.
Continues after advertising
In a statement, the Brazilian Tree Industry (Ibá) stated that “it records the decision to include pulp in the list of exceptions of the US tariff decree”, as well as the inclusion of cloak iron, produced in Brazil in part with charcoal in the replacement of inputs of fossil origin.
The association, however, says it is concerned with the wooden panels and sawn wood products that entered the list of tariff exports, as well as packaging papers and industrial bags. “Indirectly, our dynamic paper packaging industry is also impacted by new incident tariffs, for example, about animal fruits and proteins that are packed by our roles.”
Meat, fruits and coffee were three relevant inputs for Brazilian exports to the United States who did not escape the tariff. The exception was orange juice – whether frozen pulp or concentrated juice. Experts evaluated that the increase of Brazilian exports could lead to inflation to the US consumer.
Continues after advertising
“Judging by what was announced today, on the bank was superpositive against what we had yesterday,” said Empiricus CEO Felipe Miranda. “Only what was relevant was really coffee and meat. The rest was all exempt. So it was much better than expected,” he says.
According to the decree published by the US President, the new rates on Brazilian products out of the list of exceptions is valid in 7 days from its publication on Wednesday, August 7. Shipments shipped on displacement before that date may land in the US until October 5 under the previous tax.
