Brazil has higher import taxes on industrialized products than the largest economies, including China
The United States government claims that Brazil maintains higher trade barriers than other economies. Brazilian tariffs are a central argument of the Trump administration to justify the possible increase in tariffs for Brazil.
The (Office of the US Trade Representative), a type of Ministry of Foreign Trade, proposed to increase import tariffs in the country on part of Brazilian products from July 1, 2026.
Additional fees added may be 37.5%. The US President (Republican Party) will decide by July 15, 2026 whether to apply the new tariffs.
The USA had a surplus in the bilateral trade balance with Brazil. But members of the Trump administration claim that this balance could be higher if there were tariff equity between the 2 countries.
The World Tariff Profiles 2025 (Global Tariff Profiles 2025 in Portuguese) from the WTO (World Trade Organization) shows that Brazil had an average tariff rate among the highest in the world in 2024, the survey’s reference year. Read (PDF – 3 MB).
Brazil’s average tariff ceiling for imports of non-agricultural products is 30.8%. They are above Brazil: India (70.1%) and Mexico (34.8%). Below are: China (9.1%), EU (3.9%) and USA (3.2%).
It’s the middle ceiling. Brazil has a higher tariff ceiling for some products. This is the case with clothing (35%) and various manufactured items (33.2%).
Brazil has historically adopted high import tariffs in several industrial sectors and maintains mechanisms to protect national production. It doesn’t matter if the government is right-wing or left-wing: the general rule has always been to protect national industry.
One example was the so-called computer market reserve policy, designed in the final phase of the military dictatorship (1964-1985), and which was in force from 1977 to 1991 (through ). The entry of foreign companies into the microcomputer and peripherals market was banned for 8 years. A generation of Brazilians and companies did not have access to technological advances from abroad.
To this day, more advanced electronic equipment is highly taxed when it enters Brazil. The US criticism also applies to the Brazilian tariff policy on imported industrial equipment and automobiles.
MORE EXPENSIVE THAN IN PARAGUAY
It is not necessary to go to the USA to make a comparison. Buying a car, an iPhone and 15 other products is much cheaper, for example, on . The neighboring country applies low import tariffs for these items because it has no intention of competing with those who manufacture them.
Despite protecting its industry, the result has not been very successful for Brazil. According to the (International Labor Organization), Brazil is the one in the world.
This discussion helps explain why the USTR investigation goes beyond political issues and includes structural issues of Brazilian trade policy.
In the US government’s assessment, Brazilian tariff policy reduces access to US products. Defenders of Brazil’s strategy argue that the measures are necessary to preserve productive sectors considered strategic for national development. Although this does not make logical sense when thinking about consumer items such as a cutting-edge cell phone, such as an iPhone 17, as it seems unlikely that the Brazilian industry, even if protected, will develop a product that is competitive like Apple’s.
RATES FROM BRAZIL TO THE USA
The WTO survey shows that Brazil applies tariffs of up to 35% to industrialized products. THE Poder360 He approached the Mdic to ask what the average tariff for industrialized products that Brazil buys from the USA is. The Mdic did not provide specific data on these items in bilateral trade. He said that WTO data must be taken into account.
The Brazilian government says that the tariffs applied to the USA are low. But the fact that some products have high rates distorts the account. If these products had lower tax rates, they would be more accessible on the Brazilian market. The average import tariff could be higher, but the quantity imported would be much higher.
Trade between Brazil and the USA in 2024 totaled US$ 127.6 billion according to the USTR. Trade with India totaled US$212.3 billion in 2024. It was 66% greater than Brazil. India’s GDP (Gross Domestic Product) is 85% higher than Brazil’s.
According to a survey by the CNI (National Confederation of Industry), the average effective tariff on North American products that are imported into Brazil is 2.7%. The 2023 study says that this is ¼ of the global rate of 11.2%, which Brazil made as a commitment at the WTO.
There are special customs regimes that reduce import costs based on a bilateral agreement. The report asked Mdic for updated information on the average tariffs applied against the USA. There was no response until the publication of this report.
With the Economic Reciprocity Law (), the government will be able to apply counterparts to countries that impose tariff measures “disloyal” unilaterally. In practice, the device allows the Executive to suspend commercial concessions, investments and intellectual property obligations.
