Brazil Emerges As Biggest Winner From U.S. Tariff Reset

(MENAFN- The Rio Times) Key Points - Brazil stands to gain more than any other country from the shift to a flat 15 percent U.S. tariff, with duties on Brazilian goods dropping by 13.6 percentage points, according to Global Trade Alert. - China and India follow with reductions of 7.1 and 5.6 percentage points respectively, while the UK, Italy, and Singapore face higher duties under the new flat rate. - However, Washington's Section 301 investigation into Brazilian trade practices - covering digital services, ethanol, intellectual property, and deforestation - remains active and could trigger new targeted tariffs.

Brazil was one of the countries hardest hit by Trump's tariff regime, with duties reaching 50 percent at the peak of bilateral tensions. Now it stands to benefit the most from its collapse.

After the Supreme Court struck down Trump's reciprocal tariffs on Friday, the president announced a flat 15 percent global rate. According to Global Trade Alert, an independent monitor, that shift cuts effective duties on Brazilian goods by 13.6 percentage points - the largest reduction of any country. China follows at 7.1 points and India at 5.6.

The losers are countries that previously enjoyed lower rates. The UK faces a 2.1-point increase, Italy 1.7, and Singapore 1.1. A uniform tariff eliminates the distortions that had punished Brazil relative to peers.

Vice President Geraldo Alckmin called the outcome positive, noting that several Brazilian exports - fuel, beef, coffee, orange juice, cellulose, and aircraft - now face zero duties. He highlighted Embraer 's sector, where tariffs dropped from 10 percent to nothing.

The relief is real but conditional. The U.S. Trade Representative confirmed that Section 301 investigations into Brazil remain open, covering digital services, electronic payments, ethanol access, intellectual property, and deforestation. If those probes find unfair practices, new targeted tariffs could follow.

Brazilian exports to the United States fell 6.6 percent in 2025 to $37.7 billion under the old regime. Whether the flat rate reverses that decline - or Section 301 replaces one set of barriers with another - will determine how lasting this reprieve turns out to be.

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