On July 30th, President Trump formally announced the Executive Order increasing the overall reciprocal tariff rate on the Republic of Brazil from 10% to 50% as previously signaled in a Truth Social post on July 9th, 2025. The reciprocal tariffs for Brazil are distinctive for the fact that they comprise two stacking tariffs; a 10% reciprocal tariff and a 40% reciprocal tariff. The start date for the 40% tariff increase is set as August 6th, 2025, 7 days after the publication date of the executive order, however there is an exemption for goods that were loaded onto a vessel and in transit prior to August 6th, 2025 and clear Customs before to October 5th, 2025.
Brazil has not yet announced retaliatory tariffs to the Executive Order reciprocal tariffs however they have an effective option in Law No 15,122 that was signed on April 14, 2025 by Brazilian President Lula da Silva. This law allows reciprocal countermeasures to be assessed in response to unilateral tariff measures implemented by other countries. These countermeasures are not limited to tariff increases but also include suspending the observance of copyright and other intellectual property rights.
This new law carries significant weight in light of previous US-Brazil trade disagreements. In 2004 Brazil filed a complaint with the WTO over U.S. programs and price supports for cotton exporters. The WTO found in favor of Brazil and in 2010 under WTO rules, allowed for cross retaliation against the U.S. in the areas of patents on pharmaceuticals, chemicals and biotechnology as well as copyrights on music and television.
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