Aircraft, oil, coffee, beef exempt from tariffs imposed by US
Civil aviation products, oil, beef, and coffee – which together accounted for one-third of Brazil’s exports to the US in the first half of this year – are not subject to the tariffs imposed by the North American country on Brazilian products.
On Wednesday (Jul. 15), the Office of the US Trade Representative (USTR) imposed a 25 percent surcharge on various products from Brazil. Products such as pulp, iron ore, pig iron, oranges, and orange juice are also exempt from the extra charge.
On the other hand, some sectors were unable to escape taxation, such as iron and steel, apparel, footwear, sugar, ethanol, pharmaceuticals, agricultural machinery, electrical machinery not intended for the aviation sector, and other manufactured goods.
The exemptions were established by the US for Brazilian products that are not produced domestically in sufficient quantities or at reasonable prices, thereby preventing shortages of certain products in the consumer market and disruptions to the US economy.
The tariff
The 25 percent tariffs were announced on Wednesday (15) and are set to take effect on July 22, following an investigation by the USTR.
The USTR justified the tariffs by stating that certain practices adopted by Brazil were unreasonable and burdened or restricted trade for US farmers, workers, innovators, and exporters.
The Brazilian government, in turn, has repudiated the new tariffs, stating that it does not recognize the legitimacy of the USTR’s investigation and adding there is no justification for these measures.
Brazil also stated it “will immediately begin the process of invoking the measures provided for in the Reciprocity Law, which was unanimously approved by the National Congress, and will raise the issue again within the framework of the World Trade Organization dispute settlement mechanism.”
