As Latin America’s largest economy and a longtime US trading partner, Brazil is at a key turning point. On July 9, President Trump announced a jump from a 10% tariff to a 50% tariff on all Brazilian imports, set to begin August 1, 2025.
The move is associated with both trade protectionism and political factors, including Brazil’s legal proceedings involving former President Bolsonaro, which Trump publicly criticised. In a letter to President Lula, Trump referenced concerns about censorship by Brazil’s Supreme Court, actions affecting free elections, and limitations on US social media platforms, stating that these issues could impact American free speech.
In this CRA Insights, Cynthia Catlett examines the trade ecosystem in Brazil, the sectors witnessing the most immediate impact, and what global businesses can expect to see from the Brazilian economy as a result of increased tariffs.
Read more about navigating the ripple effects of Trump’s tariffs in Brazil here.
