WHAT’S THE LATEST

On July 30, President Trump signed an Executive Order implementing an additional 40% tariff on Brazilian products, bringing the total tariff to 50%, effective August 5. This is in addition to the previous IEEPA Tariff at 10%.

This tariff, enacted under the International Emergency Economic Powers Act (IEEPA), is in addition to any existing duties or restrictions currently in place.

WHAT WE KNOW

  • The new 40% ad valorem duty applies to covered goods of Brazilian origin imported into the U.S. on or after the effective date.
  • Annex I of the Executive Order outlines a list of exceptions, including:
    • Certain silicon metal
    • Pig iron
    • Civil aircraft and parts/components
    • Metallurgical grade alumina
    • Tin ore
    • Wood pulp
    • Precious metals
    • Energy and energy products
    • Fertilizers
  • Exemptions:
    • Goods subject to Section 232 Duties.
    • Goods covered under 50 U.S.C. 1702(b), including:
      • Postal, telegraphic, telephonic, or other personal communication
      • Donations of food, clothing and medicine intended to relieve human suffering
      • Informational materials
      • Any transactions ordinarily incident to travel to or from any country, including importation of accompanied baggage for personal use.
  • In-Transit Exemption:
    • Goods originating from Brazil are exempt from the additional tariff if they meet both of the following conditions:
      • Were loaded onto a vessel at the port of loading and in transit on the final mode of transit prior to entry into the U.S. before 12:01 a.m. ET, seven days after the Executive Order is signed (excluding the day of signature).
      • Are entered for consumption or withdrawn from warehouse before 12:01 a.m. ET on October 5.

WHAT'S NEXT?

SEKO is closely monitoring ongoing developments and diplomatic discussions to ensure we have the latest information to guide our clients. We will continue to provide timely updates as official guidance or confirmed changes are released.

If you have questions, please reach out to your SEKO representative, or email us at hello@sekologistics.com.