U.S. Tariffs Threaten to Disrupt Brazil-Iran Agribusiness Trade in 2026
The U.S. plans to impose a 25% tariff on countries trading with Iran could severely affect Brazil's $3 billion agribusiness trade with Tehran, raising concerns over export costs and market access.
- • The U.S. announced a 25% tariff on countries trading with Iran, including Brazil.
- • Brazil’s exports to Iran in 2025 totaled $2.9 billion, mainly in agricultural products like corn and soybeans.
- • The tariff could raise total U.S. tariffs on Brazilian goods to up to 65%.
- • Diplomatic ties include a bilateral agricultural committee and Iran’s BRICS membership.
Key details
The United States announced plans to impose a 25% tariff on countries continuing trade relations with Iran, a move that could significantly impact Brazil's lucrative agribusiness exports. In 2025, Brazil's trade with Iran reached nearly $3 billion, with exports valued at $2.9 billion and imports totaling $84.5 million. Brazilian exports to Iran are heavily concentrated in agricultural products, representing 87.2% of sales, primarily corn and soybeans — corn alone accounted for $1.9 billion, or 67.9% of exports, while soybeans made up approximately $563 million or 19.3% of exports.
The potential U.S. tariff could raise total tariffs on Brazilian goods entering the American market to as high as 65%, considering existing tariffs that range up to 40% on certain products like industrial machinery and footwear. Although some Brazilian agricultural products had been exempted from recent U.S. surcharges, they would face this new 25% tariff if the executive order is enacted. The application of the tariff to existing contracts remains unclear, and no formal decree has been issued yet.
While Iran accounts for only 0.84% of Brazil's total exports worldwide, it holds significant regional importance as the fifth-largest destination for Brazilian exports in the Middle East, behind the UAE, Egypt, Turkey, and Saudi Arabia. Trade has fluctuated in recent years, peaking at $4.2 billion in 2022 before declining and then recovering in 2024-2025. Brazil primarily imports fertilizers, pistachios, and dried grapes from Iran.
Diplomatic efforts have sought to strengthen bilateral cooperation. Notably, a visit from Iran’s Minister of Agriculture to Brazil in April 2024 led to the creation of a bilateral agricultural committee aimed at fostering trade. Iran’s recent membership in the BRICS group further underscores growing ties, though U.S. sanctions and tariffs pose new challenges.
Ongoing unrest in Iran, marked by protests and government crackdowns following years of sanctions-related economic hardship, add an element of uncertainty to the geopolitical landscape influencing trade dynamics. The Brazilian government is currently awaiting additional details on the scope and enforcement of the U.S. tariffs to assess potential impacts on its export sectors.
This article was synthesized and translated from native language sources to provide English-speaking readers with local perspectives.
