On July 30, President Trump issued a new Executive Order and fact sheet under IEEPA, citing recent trade policies by the Government of Brazil. As a result, an additional 40% tariff will apply to Brazilian goods entered for consumption—or withdrawn from warehouse for consumption—starting at 12:01 a.m. EDT on August 6. This is on top of the existing 10% reciprocal tariff, bringing the total added duty to 50% above the standard MFN rate.
What’s Excluded
- Goods in Transit: Items loaded before August 6 and entered by October 5 are exempt.
- 50 U.S.C 1702(b) Exceptions: Excludes personal communications, humanitarian goods (like food, medicine, and clothing), informational materials, and travel-related imports.
- Annex I Goods: Certain products—such as silicon metal, pig iron, civil aircraft, Brazil nuts, orange juice, and select energy and paper goods—are not affected. (See Annex for full list.)
- Section 232 Items: Steel, aluminum, autos and parts, and copper (starting August 1) already covered under separate tariffs are also excluded.
Goods entering Foreign Trade Zones (FTZs) after August 6 must be admitted under privileged foreign status unless they qualify for domestic status, in which case the new tariff doesn’t apply. Importantly, claiming duty drawback is still allowed at this time.
The Order leaves room for adjustments. Tariffs may increase if Brazil retaliates, or decrease if Brazil makes changes to address the concerns raised. If any part of the order is invalidated, the rest remains in effect.
Mohawk Global Trade Advisors is keeping a close eye on the changing tariff landscape. We’re here to help you navigate country-specific impacts, manage risk, and stay compliant. Reach out to us for strategic guidance tailored to your supply chain.