U.S. Supreme Court Ruling Brings Major Tariff Relief to Brazil, Boosting Exports
Brazil emerges as the biggest beneficiary of a U.S. Supreme Court ruling invalidating Trump-era tariffs, leading to a major reduction in export tariffs and significant economic gains.
- • The U.S. Supreme Court invalidated Trump-era tariffs under IEEPA, benefiting Brazil the most with a 13.6% average tariff reduction.
- • Brazil’s Ibovespa stock index surged following the decision, driven by exporters affected by previous tariffs.
- • Traditional U.S. allies like the UK face tariff increases, causing concern in their export sectors.
- • Brazil’s President Lula plans to negotiate removal of remaining steel and aluminum tariffs during a March visit to Washington.
Key details
The U.S. Supreme Court has overturned tariffs imposed under former President Donald Trump's administration, resulting in significant economic benefits for Brazil. This landmark decision invalidated tariffs set under the International Emergency Economic Powers Act (IEEPA), which the court found were implemented without Congressional approval, reinforcing the need for institutional oversight in trade policy.
According to analysis by Global Trade Alert, Brazil stands to gain the most from this ruling with an average tariff reduction of 13.6 percentage points on its exports to the United States. This reduction comes in light of Brazil previously facing heavy tariffs—by the end of last year, 22% of Brazilian exports to the U.S. were subject to 50% tariffs, and 27% under Section 232 security-related tariffs. The new tariff policy, setting a flat 15% rate, will take effect on September 24 and remain for 150 days.
Brazil's significant tariff relief also led to a surge in its stock market, with the Ibovespa index hitting record highs as exporters like Embraer and Taurus Armas benefited directly. This contrasts with traditional U.S. allies such as the United Kingdom and Japan, who are seeing tariff increases of 2.1 and similar percentage points respectively, causing concern among their business communities.
The U.S. government's reliance on these tariffs had generated $118 billion in revenue by early 2026, but the Supreme Court's ruling may require reimbursements of up to $175 billion to importers. Moreover, ongoing investigations under Section 301 of the Trade Act pose further uncertainty, as new trade barriers targeting countries including Brazil could still be introduced.
Looking ahead, Brazil's President Lula is scheduled to visit Washington in March to negotiate the removal of remaining tariffs on steel and aluminum, aiming to strengthen Brazil’s trade position beyond raw material exports. This ruling marks a pivotal shift in U.S.-Brazil trade relations with potentially broad implications for Brazilian exporters and economic growth.
This article was translated and synthesized from Brazilian sources, providing English-speaking readers with local perspectives.
Source articles (2)
Source comparison
Legal basis for new tariffs
Sources report different legal bases for the new tariffs imposed by Trump.
gazetadopovo.com.br
"The tariffs were imposed under the International Emergency Economic Powers Act (IEEPA)."
oglobo.globo.com
"The tariffs are based on Section 122 of the Trade Act of 1974."
Why this matters: One source claims the new tariffs are based on the International Emergency Economic Powers Act (IEEPA), while the other cites Section 122 of the Trade Act of 1974. This difference is crucial as it affects the legitimacy of the tariff imposition.