US tariffs will have long-term implications on Brazilian exports

Brazilian trade with the United States rose in July, ahead of the 50% tariffs enforced by President Donald Trump’s administration at the start of August. US importers purchased USD 3.7 billion worth of goods from Brazilian producers, up 3.8% from a year earlier — a record for the month.

The Brazil-US Chamber of Commerce attributed the surge to exporters rushing shipments to avoid the incoming levies. Aircraft, pig iron, lime and cement saw the largest increases. In late July, airplanes and parts were added to the list of nearly 700 tariff exemptions, as were certain iron products — though both remain subject to industry-specific duties.

Some companies have been accelerating shipments since the first round of tariffs in April. But smaller firms heavily reliant on the US market have scaled back production, sent workers on company-wide vacation and, in some cases, laid them off — a trend the Lula administration hopes to curb with the exporter relief package announced Wednesday.