Brazilian pulp has been excluded from the new 25% additional tariff announced by the United States government on a range of products imported from Brazil. Confirmed by the Office of the United States Trade Representative (USTR), the measure will take effect on July 22 and preserves one of Brazil’s main export products in the US market.
The decision follows an investigation conducted by the USTR under Section 301 of the Trade Act of 1974, a mechanism that allows the US government to investigate trade practices considered harmful to the country’s interests.
During the process, the administration of President Donald Trump alleged that Brazil adopts practices that “burden or restrict” bilateral trade, citing issues such as the PIX payment system, access to the ethanol market, illegal deforestation, and piracy.
Despite the introduction of the new tariff, the US government established a list of products that will remain exempt from the additional duty. In addition to pulp, items such as oil, coffee, beef, and aircraft were excluded from the measure. According to US authorities, these products were exempted because they are considered strategic to the country’s economy, either because of their potential impact on domestic prices or because of limited domestic production.
By contrast, products such as paper, ethanol, and agricultural machinery will be subject to the new tariff.
The exclusion of pulp means that a significant share of Brazilian exports to the United States remains unaffected by the tariff measure, reducing its potential impact on the sector’s production chain.
The trade investigation was concluded after a year of analysis and negotiations between the governments of Luiz Inácio Lula da Silva and Donald Trump. Representatives from different sectors of the economy also participated in the process through public hearings held during the final stage of the investigation.
The additional tariff will take effect on July 22 but will not apply to goods shipped from Brazil to the United States before the measure comes into force.
The US government also stated that the decision may be reviewed or suspended if Brazil eliminates the trade practices under scrutiny.
At the same time, the United States is considering the adoption of an additional 12.5% tariff on 60 economies, including Brazil, on the grounds that these countries have not implemented measures considered sufficient to prevent the circulation of products made with forced labor. The proposal remains under review.
