U.S. tariffs on Brazil imports in 2026 are anchored by Section 232 steel tariffs administered through a Tariff Rate Quota system — a structure that gives Brazil an allocated volume of steel exports at 0% before the 25% over-quota rate applies — combined with the IEEPA Liberation Day baseline rate. Brazil is a top-fifteen U.S. import source with a concentrated export profile in steel, agricultural commodities, aircraft, and petroleum. This guide covers every applicable tariff authority and the operational strategies importers use to manage Brazil-origin tariff exposure.
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U.S.-Brazil Trade Snapshot in 2026
Brazil’s trade relationship with the United States is shaped by its position as the world’s leading exporter of soybeans, sugar, coffee, and orange juice, and as a major global steel producer. U.S. tariff exposure for Brazil-origin goods is concentrated in steel, where Section 232 TRQ mechanics matter significantly, and in agricultural commodities, where MFN and IEEPA baseline rates apply.
Brazil as a U.S. Trading Partner
The U.S. imported approximately $38 billion in goods from Brazil in 2024, making it approximately the 12th-largest import source. Brazil’s export mix to the U.S. is commodity-heavy: semi-finished steel slabs (the single largest Brazil export to the U.S.), soybeans, crude oil, aircraft (Embraer), coffee, and iron ore dominate the trade flow. Unlike China or the EU, Brazil does not face a high announced IEEPA rate — its Liberation Day rate of 10% is at the universal baseline, reflecting a relatively smaller bilateral trade surplus. Our current U.S. tariff rates by country page provides context.
Key Import Categories from Brazil
- Semi-finished steel and steel mill products (HTS Chapter 72): slabs, billets, hot-rolled coil.
- Iron ore and ferroalloys (HTS Chapter 26): iron ore pellets, ferrosilicon, ferrochrome.
- Soybeans and agricultural commodities (HTS Chapter 12): soybeans, cotton, tobacco.
- Aircraft and aerospace components (HTS Chapter 88): Embraer regional jets, aircraft parts.
- Coffee (HTS Chapter 9): green coffee, roasted coffee, instant coffee.
- Crude oil and petroleum products (HTS Chapter 27).
Current U.S. Tariff Stack on Brazil Imports
Brazil’s tariff profile is defined by the Section 232 steel TRQ — which creates a quarterly quota fill dynamic — combined with IEEPA at the 10% baseline rate that affects all categories.
Statutory Authorities in Play
IEEPA Liberation Day (Executive Order 14257, April 2025)
Brazil’s announced reciprocal rate was 10% — the universal baseline rate, not an elevated country-specific rate. This means Brazil faces the same IEEPA rate as the 90-day pause rate: 10% on all goods unless specifically exempted. Verified via Federal Register.
Section 232 steel (Trade Expansion Act §232)
- Brazil operates under a quarterly Tariff Rate Quota for steel. Within-quota steel enters at 0%.
- Over-quota steel faces 25%. Brazil’s TRQ is one of the most actively managed in the Section 232 program because semi-finished steel slabs (a Brazil specialty) are critically needed by U.S. steel mills that lack sufficient domestic slab production. Monitor the CBP steel TRQ fill rates quarterly — when the TRQ fills, the rate jumps from 0% to 25% mid-quarter.
Section 232 aluminum (10%)
Brazilian aluminum face 10% Section 232. Brazil is a significant aluminum producer.
MFN/NTR base rates
Soybeans enter at 0% MFN. Coffee at 0% MFN. Aircraft at 0% MFN (HTS 88.02). Steel at 0–5% MFN depending on product form.
How the Rates Layer on a Single Entry
Brazil-origin semi-finished steel slabs (HTS 7207.12) imported within the quarterly TRQ:
- MFN base rate: 0%.
- Section 232 (within TRQ): 0%.
- IEEPA baseline: +10%.
- Effective rate (within TRQ): 10%.
The same slabs imported after the quarterly TRQ fills:
- MFN base rate: 0%.
- Section 232 (over TRQ): +25%.
- IEEPA baseline: +10%.
- Effective rate (over TRQ): 35%.
The TRQ fill date is therefore the pivotal operational variable for Brazil steel importers. Our Captain tariff tracker monitors Brazil TRQ fill status in real time.
Top Affected HTS Chapters and Sectors
Brazil’s tariff exposure concentrates in steel (Section 232 TRQ) and agricultural commodities (IEEPA baseline), with aircraft representing a high-value category that enters at low effective rates.
Semi-Finished Steel and Steel Mill Products (Ch 72–73)
Brazil is the primary global supplier of semi-finished steel slabs to U.S. integrated steel mills that use slabs as feedstock for rolling operations. Companies like Nucor, ArcelorMittal USA, and Cleveland-Cliffs import Brazil-origin slabs to supplement domestic slab production. Section 232 TRQ mechanics make slab import planning extremely time-sensitive: quota exhaustion mid-quarter can shift a $200/ton landed cost advantage to a $50/ton disadvantage overnight when the over-quota rate kicks in. Our steel and aluminum tariffs guide covers Section 232 TRQ mechanics. Our Section 232 tariffs analysis covers the exclusion petition process for over-quota situations.
Iron Ore and Ferroalloys (Ch 26, 72)
Brazil’s Vale is the world’s largest iron ore producer. U.S. steel mills that operate blast furnace operations (increasingly rare but still active) import Brazil-origin iron ore and pellets. Iron ore itself carries 0% MFN and may be exempted from IEEPA — importers should verify current exemption status. Ferroalloys (ferrosilicon, ferrochrome, ferromanganese) face MFN rates of 1.5–5% plus IEEPA baseline.
Soybeans and Agricultural Commodities (Ch 12)
Brazil is the world’s largest soybean exporter and competes directly with U.S. soybeans in global markets. U.S. imports of Brazil soybeans are rare (the U.S. is an exporter). However, Brazilian soy-derived products — soybean oil (Ch 15), soy protein concentrates (Ch 23) — do enter the U.S. and face IEEPA baseline plus MFN rates of 0–7.9%. Coffee (Ch 9) enters at 0% MFN — the U.S. does not produce coffee and applies no MFN duty to coffee imports. IEEPA baseline at 10% applies unless a coffee-specific exemption is in effect.
Aircraft and Aerospace Components (Ch 88)
Embraer is Brazil’s most high-value U.S. export by per-unit value — E175 and E190 regional jets sold to U.S. airlines like American Eagle, SkyWest, and Envoy face 0% MFN. IEEPA 10% baseline applies unless aircraft are specifically exempted. For a $25 million Embraer E175, a 10% IEEPA duty represents $2.5 million in additional cost per aircraft — a significant purchase price increment for regional aviation economics. Embraer and U.S. airlines have been active in seeking IEEPA aircraft exemptions through USTR and Commerce channels.
Section 232 Steel TRQ System: How Brazil’s Quota Works
The Brazil Section 232 steel TRQ is unlike any other bilateral trade arrangement in the U.S. tariff system. Understanding the quarterly quota mechanics is essential for Brazil steel importers.
Brazil’s Quarterly Quota Allocation
Brazil’s steel TRQ is allocated quarterly based on historical import volumes. The quarterly allocation is published by CBP at the start of each quarter. When cumulative Brazil steel entries reach the quarterly quota, CBP switches to collecting the 25% over-quota deposit on subsequent entries. Importers must track CBP quota utilization daily during the final weeks of each quarter to time shipment arrivals appropriately. Early-quarter arrivals secure within-quota rates; late-quarter arrivals risk over-quota exposure.
Over-Quota Penalty Rate
The over-quota rate of 25% Section 232 + 10% IEEPA = 35% effective rate on customs value. For a $1,000,000 CIF slab entry, the cost delta between within-quota (10% IEEPA = $100,000) and over-quota (35% = $350,000) is $250,000. Shipment timing strategy — including vessel routing, arrival port selection, and customs entry filing timing — can determine which quota applies to a given shipment. Our tariff consulting firm team advises on TRQ timing strategy for Brazil steel importers.
How Importers Calculate Landed Cost on Brazil-Origin Goods
Brazil landed cost modeling requires two scenarios for steel: within-TRQ (0% Section 232 + 10% IEEPA = 10%) and over-TRQ (25% Section 232 + 10% IEEPA = 35%). For agricultural and aircraft imports, the analysis is IEEPA baseline plus MFN.
Worked Example
A Brazilian steel slab purchase: $500,000 CIF, within quarterly TRQ = $50,000 duty (10%). Same purchase, TRQ exhausted = $175,000 duty (35%). Our Captain tariff tracker and tariff and customs duty consulting team model TRQ timing scenarios and monitor CBP utilization reports for Brazil steel importers.
Common Landed-Cost Pitfalls
- Not monitoring CBP TRQ fill status weekly during the final month of each quarter.
- Assuming aircraft imports are IEEPA-exempt without verifying current exemption status.
- Forgetting that IEEPA 10% applies even within the Section 232 TRQ window for steel.
- Overlooking Section 232 aluminum (10%) on Brazilian aluminum products — Brazil has significant aluminum smelting capacity.
Mitigation Strategies for Importers Sourcing from Brazil
Brazil-origin importers have several targeted mitigation tools, especially in the steel sector where Section 232 TRQ management and the exclusion process provide structured relief pathways.
TRQ Quota Management and Shipment Timing
The primary mitigation tool for Brazil steel importers is within-TRQ shipment scheduling. Working with logistics providers to time vessel arrivals and customs entry filings within the quota window reduces Section 232 exposure from 25% to 0%. Our trade advisory services team provides TRQ monitoring and shipment timing advisory for Brazil steel programs.
Section 232 Exclusion Process
For specific Brazil-origin steel products not covered by the TRQ or for over-quota situations, the Section 232 tariffs exclusion process provides product-specific relief. Brazil slab has historically received exclusion support given the structural shortage of U.S. domestic slab production — U.S. steel mills have successfully argued that Brazil slabs are not domestically available in sufficient quantity.
First Sale for Export
For Brazil imports transacting through commodity trading intermediaries, First Sale for Export reduces the dutiable value to the producer’s mill price rather than the trader’s selling price. For steel slab purchases through steel trading companies, First Sale can reduce the duty base by 5–15%.
Frequently Asked Questions
What is the current U.S. tariff rate on Brazil imports?
Brazil-origin goods face a 10% IEEPA baseline rate (Brazil’s Liberation Day announced rate was 10% — the universal baseline). Steel imports face Section 232 TRQ mechanics: 0% within-quota + 10% IEEPA = 10% effective; 25% over-quota + 10% IEEPA = 35% effective. Aluminum faces 10% Section 232 + 10% IEEPA = 20%. Agricultural commodities (soybeans, coffee) and aircraft carry 0% MFN + 10% IEEPA unless specifically exempted. Use the Captain tariff tracker for current rates.
Are Brazil tariffs still in effect in 2026?
Yes. IEEPA (10% baseline) applies to all Brazil-origin goods unless specifically exempted. Section 232 steel TRQ and the 25% over-quota rate are active. Section 232 aluminum (10%) is active. There is no U.S.-Brazil FTA providing preferential duty rates.
Which HTS chapters carry the highest U.S. tariff on Brazil-origin goods?
Highest effective rates: steel (Ch 72–73) at 35% when over-quota (25% Section 232 + 10% IEEPA); aluminum (Ch 76) at 20% (10% Section 232 + 10% IEEPA). Agricultural commodities (Ch 9, 12) and aircraft (Ch 88) face only the 10% IEEPA baseline plus any applicable MFN rate — generally 0–7% MFN depending on specific product.
How does the tariff stack layer on a single entry?
For steel within TRQ: 0% Section 232 + 10% IEEPA = 10%. For steel over TRQ: 25% Section 232 + 10% IEEPA = 35%. For aluminum: 10% Section 232 + 10% IEEPA = 20%. For other goods: MFN base rate + 10% IEEPA = effective rate. Each percentage applies additively to the same declared customs value.
Can I use an FTZ to defer U.S. tariffs on Brazil imports?
Yes. Foreign Trade Zones defer Section 232 and IEEPA duty payments until goods are withdrawn for U.S. consumption. For steel slab importers facing TRQ uncertainty, FTZ admission can provide operational flexibility — but the rate paid at withdrawal reflects the rate in effect at withdrawal, not admission. If goods are admitted within TRQ and the next quarter’s TRQ fills before withdrawal, over-quota rates do not retroactively apply to previously admitted goods.
Are Brazil tariffs eligible for drawback or refund?
Section 232 and IEEPA duties paid on Brazil-origin steel qualify for manufacturing drawback (99% recovery under 19 USC 1313) when U.S. steel mills produce finished steel products incorporating Brazil-origin slabs and export those products. For U.S. steel producers with active export programs, manufacturing drawback on Brazil-origin slab inputs is one of the most valuable drawback categories in the U.S. steel industry.
How often do U.S. tariff rates on Brazil change?
The Section 232 steel TRQ allocation changes quarterly. IEEPA rates are set by executive order and can change with limited advance notice. Section 232 exclusion petition outcomes can change the applicable rate for specific products. The Captain tariff tracker monitors Brazil TRQ fill rates and IEEPA changes in real time.
