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Brazil Aircraft Gain Duty-Free US Entry
25 Feb
Summary
- US allows Brazilian aircraft duty-free entry, lowering tariffs from 10%.
- This move places Brazilian exports on equal footing with global competitors.
- About 46% of Brazil's exports to the US will soon face no additional tariffs.
Brazil's government has expressed satisfaction with Washington's recent decision to allow aircraft from Brazil to enter the United States without duties, a reduction from the previous 10% rate. This adjustment is particularly beneficial for Brazil's prominent aerospace industry, including Embraer, which had been at a competitive disadvantage compared to rivals from Canada and France. The move aims to place Brazilian exports on equal footing with those from other nations.
Following these tariff changes, the Ministry of Development, Industry and Foreign Trade estimates that approximately 46% of Brazil's exports to the U.S. will no longer be subject to additional tariffs. Furthermore, about 25% of the country's exports, valued at roughly $9.3 billion as of 2025, will now face a uniform 10% global tariff. This represents an improvement from the previous situation where around 22% of Brazilian exports encountered much higher tariffs of 40% or 50%. Additionally, agricultural products like fish, honey, tobacco, and soluble coffee will see their tariffs reduced from 50% to 10%. The United States remains Brazil's second-largest trading partner.
