U.S. 50% Tariff on Brazil: Are Americans Footing the Bill?

---

What Happened?

In early August 2025, the United States government imposed a 50% tariff on most products imported from Brazil. The decision was announced by President Donald Trump as a political response to the trial of former Brazilian president Jair Bolsonaro. The measure caught the market by surprise and had immediate impacts—particularly for Americans themselves.

Impact on Brazil: Limited

Although the tariff is high, the effects on Brazil are expected to be moderate. The United States accounts for roughly 12% of Brazilian exports, and many products—such as aircraft, oil, and pulp—were excluded from the tariff. In addition, Brazil has already been redirecting its exports to other markets, including China and Europe.

And the United States?

Costlier Coffee, Beef, and Juice

American consumers are likely to be the most affected. About 30% of the coffee consumed in the U.S. comes from Brazil. With the new tariff, the cost of coffee beans has risen, and coffee chains and roasters have already warned that price increases will be passed on to customers.

Brazil is also one of the main suppliers of beef used in hamburgers and processed foods. The tariff raises the cost of these products at a time when the U.S. cattle herd is at reduced levels—putting additional pressure on supermarket prices.

Even orange juice—which was excluded from the tariff—saw futures prices surge immediately after the announcement, driven by fears of potential shortages.

American Industries on Alert

Several U.S. production sectors rely on Brazilian inputs:

• Pulp – Used to produce paper, packaging, and even toilet paper.

• Fertilizers – Essential for American agriculture.

• Aircraft and Parts – Components from Embraer are used by regional airlines.

These sectors lobbied the government for exemptions, and many were granted. However, tensions remain: production chains are now more expensive and less stable.

Businesses Express Concern

The U.S. Chamber of Commerce publicly criticized the measure. More than 6,000 American companies depend on Brazilian imports to operate. In addition, nearly 4,000 U.S. firms operate in Brazil and could be harmed if Brazil decides to retaliate.

Risk of Retaliation

So far, Brazil has refrained from imposing retaliatory tariffs. However, the Brazilian government has signaled that if the situation continues, it may respond with measures targeting American products. This would put U.S. exporters—particularly in agribusiness and the technology industry—at risk.

And the Political Cost?

The measure is already generating domestic debate in the United States. Business leaders, economists, and even politicians from within the Republican Party have warned that the tariff raises the cost of living without delivering real gains for the country. In the long term, such actions could drive inflation higher and threaten jobs in sectors dependent on trade with Brazil.

Conclusion

The 50% tariff was intended as a punishment for Brazil but, in practice, may prove costly for the United States itself. From basic food products to industrial inputs, Americans are likely to feel the financial impact of this decision. Economists caution that in trade wars, there are no real winners—especially for consumers.

Sources: Reuters, Bloomberg, AP News, and U.S. Chamber of Commerce.