The following analysis was provided in part from Sandler, Travis, & Rosenberg, P.A. (ST&R), NCBFAA’s Customs Counsel, and Legislative Advisor:

On July 30th, President Trump declared a new IEEPA emergency with respect to Brazil, resulting in a new tariff of 40% to be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 AM EDT on August 6th. 

In his executive order (EO) the President lays out the new tariff. A summary of the actions can be found in this Fact Sheet.

While this 40% tariff will have a significant impact on a number of imports from Brazil, there are several exceptions to the applicability of this tariff. Below is a summary of those exceptions and other significant details from the order:

Exceptions to the Tariff

• The tariffs will NOT apply to goods in transit that were loaded on to a vessel at the port of loading and in transit on the final mode of transit prior to 12:01 AM EDT on August 6th, AND were entered for consumption, or withdrawn from warehouse for consumption before 12:01 AM EDT on October 5th, 2025. 
• Goods provided for 50 U.S.C. 1702(b) , i.e. any postal, telegraphic, telephonic, or other personal communication; donations of food, clothing and medicine intended to relieve human suffering; merely informational materials; any transactions ordinarily incident to travel to or from any country, including importation of accompanied baggage for personal use.
• Goods in Annex I, which include a wide variety of goods such as silicon metal, pig iron, civil aircraft, Brazil nuts, orange juice, some energy products, wood pulps, certain paper, etc.
• Goods subject to Section 232 actions, which would currently include steel, aluminum, auto & parts, and now copper (effective August 1st).

Stacking of Tariffs

• The IEEPA reciprocal tariff will also apply to any goods subject to the new 40% rate for a total of 50% tariff above the MFN rate of due.

FTZ Goods

• Products admitted to an FTZ after 12:01 AM EDT on August 6th must be admitted as privileged foreign status.
• Goods eligible for admission to an FTZ under domestic status are exempt from the tariffs.

Future Modifications (Increase or Decrease) 

• INCREASE
  • If a country retaliates against US goods as a result of these tariffs, the President may increase or expand the scope of the tariffs.
• DECREASE
  • If a country remedies the non-reciprocal trade arrangements, the President my decrease or limit the scope of the tariffs.

Duty Drawback 

• At this time, there is no express prohibition to claiming duty drawback on these tariffs. 

Severability

• If any provision of the E.O. is held to be invalid, the remainder of the order will remain in place and not be affected.

Note that RIM will continue to monitor the Federal Register notice and any Customs and Border Protection (CBP) guidance issued on this action and will advise as more information is made available. Please reach out to your RIM representative if you have any further questions.