The US sells more to Brazil than it buys – but Trump is slapping steep tariffs on its exports anyway

The U.S. imposed a 25% tariff on Brazilian goods in July 2026, plus another 12.5 points on much of that trade, for a combined 37.5% where they overlap, despite the U.S. running a $14 billion trade surplus with Brazil in 2025 ($54 billion in exports versus $40 billion in imports). This follows a 50% tariff Trump announced in July 2025 that the Supreme Court struck down in February 2026.

Scholars studying the dispute argue it was never really about trade, tracing it to Trump's objections to the criminal prosecution of his ally, former President Jair Bolsonaro, now serving a 27-year sentence for plotting a coup. The administration exempted 471 Brazilian products, mostly commodities American buyers need, while leaving tariffs on manufactured goods like footwear and apparel.

With Brazil's presidential election approaching and China now buying far more of Brazil's exports than the U.S. does, the piece notes Washington's leverage has eroded, and standing up to the tariffs may help incumbent Lula politically.

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