Trump raises tariffs on Brazil to 50% but exempts crude, iron, other key exports

US President Donald Trump on July 30 issued an executive order increasing the US tariff on goods from Brazil to 50%, up from 10%, but exempted key commodities like crude oil, petroleum products, and iron.

Trump had threatened a 50% tariff earlier in July. The new tariff rate will be effective in seven days.

The tariff exemptions apply to some of Brazil's biggest exports to the US.

Crude oil was Brazil's largest export to the US in terms of value in 2024, representing $44.8 billion, according to Brazil's Ministry for Development, Industry and Trade.

In July, Brazil exported 230,000 b/d to the US, with the bulk of that going to the US West Coast, S&P Global Commodities at Sea data shows.

The order also exempts all forms of iron that are used as steel inputs. Brazil's steel and aluminum sectors have already had 50% tariffs imposed on their sales to the US, effective June 4.

Brazil is the second-biggest steel exporter to the US, and the largest iron exporter. Brazil's iron and steel exports, including pig iron, to the US were worth $5.72 billion in 2024, according to the UN's Comtrade database.

The executive order argued that the tariffs are needed to deal with policies and actions by the government of Brazil that are a threat to national security, foreign policy and the economy of the US.

The order alleged that the Brazilian government is "politically persecuting" former Brazilian President Jair Bolsonaro, who is currently standing trial in Brazil on accusations of leading a coup attempt against the current government.