The United States excluded beef from the additional 25% tariff that it will begin applying on July 22 to a broad list of products imported from Brazil. The exemption avoids another blow to the world’s leading beef exporter and reflects the supply needs of the US market, which is going through a period of lower production and high domestic prices.
In addition to beef, other relevant Brazilian products were exempted, including coffee, oranges and orange juice, some energy products and aircraft components. The US administration explained that the exclusions cover goods that are not produced domestically in sufficient volumes or whose inclusion could create supply problems and higher costs for consumers and industries, according to Reuters.
The measure was adopted under Section 301 of the Trade Act of 1974, a different legal basis from that used for the broader tariffs previously imposed by the US government. This provision allows the United States to respond commercially to practices by other countries that are considered discriminatory or harmful to US businesses.
The tariff is the result of an investigation launched a year ago by the Office of the United States Trade Representative (USTR). Washington challenged Brazil over its policies on digital trade and electronic payment services, the granting of tariff preferences to some trading partners, barriers to US ethanol, shortcomings in intellectual property protection, and insufficient enforcement of anti-corruption and illegal deforestation laws. The USTR concluded that those policies restrict or burden US commerce.
Brazil rejected the arguments and described the decision as unjustified and politically motivated. The Brazilian government said it would consider a response under its trade reciprocity legislation and before the World Trade Organization.
Among the agro-industrial products affected, sugar and ethanol stand out. In 2025, Brazil exported about 420,000 tons of sugar and 253 million liters of ethanol to the United States, with the ethanol shipments valued at US$ 163 million. Sugar exports had been significantly higher in 2024, at 1.12 million tons. Brazil’s sugarcane and biofuels sectors criticized Washington for demanding greater access for US ethanol while maintaining restrictions on Brazilian sugar imports, Reuters reported.
Industrial products such as furniture, machinery and footwear were also included. Overall, the measure is estimated to cover around 18% of Brazilian exports to the United States.
For the beef industry, the key point is that Brazilian beef will continue entering the US market without this additional surcharge. The United States needs imports to supplement its limited domestic supply, particularly beef used in ground beef production, so including the product would have added further pressure to domestic prices.