What is executive order, an instrument used by Trump to impose fare on Brazil some Brazilian sectors have managed to escape the 50% rate imposed by the United States, while others were directly hit by the measure. The decree signed on Wednesday (30) by President Donald Trump raised at 40 percentage points the rate on Brazilian products, but also brought a list of 700 exceptions that benefit strategic segments such as the aeronautical, energy and part of agribusiness. 📱 Bake the G1 app to see real -time and free news already sectors such as coffee, beef and fruits should feel the impact hard. The new rate comes into force on August 6 and can directly affect the Brazilian trade balance, as the US is the country’s second main export destination behind China. Some of the main Brazilian products have managed to escape the new fare are: ✈️ Aeronautics: exemption from complete aircraft to parts, engines, subsets and to flight simulators. This is important for companies like Embraer and the entire aeronautical component supplier chain, which export to US automakers and airlines. The measure avoids a break in international contracts and protects highly qualified jobs in Brazil. 🚗 Automotive: passenger vehicles – such as sedans, SUVs, minivans and load vans – as well as light trucks and their respective parts and components, have also been exempt. The decision preserves the competitiveness of Brazilian automakers who export to the US and avoids a direct impact on the auto parts industry. 🔋 Energy and derivatives: Various energy products were spared from the fare, including coal, natural gas, oil and derivatives such as kerosene, lubricating oils, paraffin, oil bun, bitumen, bituminous mixtures and even electricity. The exemption of these items avoid distortions in one of the most relevant sectors of the Brazilian trade balance. 🌾 Agribusiness (partially): Some agricultural products have escaped from surcharge, such as orange juice and pulp, brown nuts, gross mica, sawn or chipped tropical wood, wood pulp and sisal wires. Fertilizers widely used in Brazilian agriculture were also exempt, which helps contain production costs in the field. ⚙️ Mining and Metals: Products such as Silicon, Guile Iron, Alumina, Tin (in various forms), Gold, Silver, FerroNiquel, Ferranióbic and Ferrous Products obtained by direct reduction of iron ore were spared. Also left out of semi -wadded items and industrial components of iron, steel, aluminum and copper. 📱Electronics: smartphones, antennas, recording devices and sound and video playbacks. 📦 Other exceptions: I. Goods returned to the US: products sent for repair or modification and return to the country. II. Goods in transit: goods that were already on their way to the US before the measurement of the measure. III. Personal Products: Items included in passenger luggage. Donations and informative materials: donations and content such as books, movies, CDs and works of art. Despite the list of exceptions, most Brazilian products will be hit by the new tariff. Among those affected are precisely some of the most exported items, such as: ☕ Coffee: Brazil exported nearly $ 2 billion in coffee to the US in 2024, equivalent to 16.7% of the total board. The 50% rate should compress the margins of the sector and make the product out for the American consumer. Cecafé already foresees a direct impact on the final price in the US. 🥩 Beef: The US is the second largest market for Brazilian beef. In 2024, there were 532 thousand tons exported, with revenue of US $ 1.6 billion. Minerva estimates that the fare can reduce its net revenue by up to 5%. Companies with US operations, such as JBS and Marfrig, can mitigate some of the effects, but the impact on the sector as a whole is significant. 🍍 Fruits: The sector exported more than 1 million tons in 2023. The rate directly affects 36.8 thousand tons of mango, 18.8 thousand tons of processed fruits (mainly acai), 13.8 thousand tons of grapes and 7.6 thousand tons of other fruits. The increase in cost can compromise the competitiveness of Brazilian fruits in the US market. Textiles: There was no wide exemption for the sector. Only very specific items, such as sisal wires for built -in and civil aircraft products, have escaped the fare. The Brazilian textile industry, which already faces strong international competition, should be harshly hit. 👠 Footwear: Brazilian shoes have not been included in any specific exception and are therefore subject to full tariff. The sector, which depends heavily on exports to the US, should face a drop in sales and increase inventory. 🪑 Furniture: Only furniture classified as “civil aircraft articles” were exempt. This includes seats used on plastic or plastic -specific aircraft and furniture for this use. The rest of the sector will be charged, affecting exporters of residential and commercial furniture. Infographic – List of exemptions to Trump Art/G1’s tariff on fees The taxation’s decision was made by President Donald Trump, who signed an executive order and declared a new national emergency to justify the measure. The US government states that Brazil has adopted recent actions that represent a threat to national security, economy and foreign policy. Therefore, it decided to increase by 40 percentage points the existed fare, now totaling 50%. The American executive order also brings harsh criticism of the Brazilian government. According to the text, Brazil would be promoting political persecution against former President Jair Bolsonaro and his supporters, as well as adopting practices that violate human rights and weaken democracy. The document directly cites Minister Alexandre de Moraes of the Federal Supreme Court (STF), accusing him of issuing secret orders to oblige American companies to censor political speeches, deliver user data, and change their internal policies under threat of sanctions. One of the cases mentioned is that of Paulo Figueiredo, who resides in the United States and was being criminally prosecuted in Brazil for statements made on American soil. In addition to the fare, President Trump ordered, on July 18, the cancellation of the visas of Alexandre de Moraes, his allies at the Supreme Court and his family members. 50% tariff imposed by the United States on Brazilian products comes into force on August 6 Reuters
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