By Brazil Stock Guide – The U.S. Supreme Court’s decision to invalidate the reciprocal tariffs imposed under President Donald Trump removes additional duties that had affected roughly $15 billion in Brazilian exports, based on 2024 trade flows. The ruling offers relief to sectors that had seen their competitiveness in the U.S. market eroded by surcharges of up to 40%.
According to calculations by members of Brazil’s economic team obtained by local press, about 22% of Brazil’s exports to the United States — equivalent to $9 billion — were subject to additional tariffs of as much as 40%. Products directly impacted included sugar, footwear, apparel, furniture, machinery and equipment. Another 15%, or roughly $6 billion, had faced a 10% surcharge introduced in April. In practice, the Court’s decision eliminates these reciprocal tariffs on that basket of goods.
The outcome had been partially anticipated by officials in Brasília, who viewed the legal foundation of the reciprocal regime as fragile. However, trade risks have not fully disappeared. Trump had separately announced a 10% tariff under Section 122 of the U.S. Trade Act of 1974, a provision that allows the president to impose temporary import surcharges to address balance-of-payments concerns. That mechanism stands apart from the reciprocal tariff framework struck down by the Court.
In addition, Washington retains the ability to rely on Section 301 of the same trade law, which empowers the Office of the U.S. Trade Representative to investigate and retaliate against practices deemed harmful to U.S. commerce. An ongoing Section 301 probe into Brazil covers issues ranging from the country’s instant payments system Pix to alleged counterfeiting in commercial hubs and restrictions affecting U.S.-based social media platforms. For Brazil, the Court’s ruling creates a window for negotiation — but not a clean slate in trade relations.
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