Brazil Intensifies Negotiations to Remove US Tariffs Amid Growing Export Competition
Brazil is intensifying efforts to eliminate US tariffs on exports and navigate increasing global competition as agricultural output rises.
- • Brazil is negotiating to remove US tariffs affecting 15% of exports under Section 301 and 232.
- • About 75% of Brazilian exports to the US are tariff-free, including key commodities.
- • Brazil is working to resolve sanitary issues blocking meat exports to South Korea and the EU.
- • Brazil's corn production is projected to reach a record 142.8 million tons, but faces global export competition.
Key details
The Brazilian government is stepping up its efforts to eliminate tariffs imposed by the United States on Brazilian exports, particularly under the contentious Section 301. Vice President Geraldo Alckmin affirmed on August 3 that Brazil will remain engaged in negotiations to address these trade barriers, which affect roughly 15% of Brazilian products exported to the US. Although 75% of exports, including key commodities like pig iron, oranges, and coffee, remain tariff-free, other tariffs persist, including a 50% levy under Section 232 on steel, copper, and aluminum.
In addition to US tariffs, Brazil faces export challenges in other international markets. The government is actively pursuing negotiations to resolve sanitary barriers blocking Brazilian meat exports to South Korea, with a mission planned for August to tackle these issues. Furthermore, Brazil is addressing European Union concerns over its beef and poultry exports, which are threatened by suspension plans linked to antimicrobial compliance. Alckmin expressed optimism these problems will be resolved by October.
Brazil’s export landscape is further complicated by intense global competition. Despite a projected record corn production of 142.8 million tons in the 2025/26 cycle—a 1% increase from the previous year—analysts caution that Brazil’s ability to increase corn exports is hindered by competition from the US and Argentina, as well as higher US prices negatively impacting export parity.
The Vice President highlighted that Brazil, alongside Australia and the United Kingdom, maintains a trade surplus with the US, and touted a $10 billion rise in Brazilian exports following the Mercosur-European Union trade agreement. Nevertheless, discussions continue on imposing increased import taxes or anti-dumping measures on countries selling goods at unfair prices to protect domestic industries.
In summary, Brazil is navigating a complex trade environment marked by persistent US tariffs, cautious optimism over resolving export compliance issues, and rising international competition, while pursuing diplomatic and regulatory avenues to secure better market access.
This article was translated and synthesized from Brazilian sources, providing English-speaking readers with local perspectives.
