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MemoMemorandumTrump 47 · R

Presidential Memorandum

Action by the United States in the Investigation Under Section 301 of the Trade Act of 1974 of Brazil's Acts, Policies, and Practices Related to Digital Trade and Electronic Payment Services; Unfair, Preferential Tariffs; Anti-Corruption Enforcement; Intellectual Property Protection; Ethanol Market Access; and Illegal Deforestation

This presidential memorandum directs the U.S. Trade Representative to impose a 25 percent tariff on all goods imported from Brazil, with exemptions for specific products listed in an annex. The action follows a Section 301 investigation initiated July 15, 2025, that found Brazil's practices in digital trade, electronic payments, tariffs, anti-corruption enforcement, intellectual property, ethanol market access, and illegal deforestation to be unreasonable or discriminatory.

Federal Register Open PDF 91 FR 45619

Impact dates

  1. 36d ago

    Memorandum signed; tariff action directed

Market exposure

Policy exposure mapping — not investment advice. Illustrative public companies are incomplete and not recommendations.

Sectors

AgricultureOil & gasSteel & aluminumAutosPharmaChemicals

Mechanisms

Tariff

Role pressure

  • AdverseImporter — 25% tariff on all Brazilian goods directly increases costs for U.S. importers of Brazilian products
  • MixedDomestic producer — Protected from Brazilian import competition but may face higher input costs if reliant on Brazilian raw materials; exemption criteria suggest some domestic producers benefit from protected supply chains
  • AdverseTrading-partner exporter — Brazilian exporters face 25% tariff barrier to U.S. market unless exempted under Annex criteria

Geographies

US

Exposure dates

  • — Memorandum signed; tariff action directed

Illustrative public companies

Curated watchlist matches by sector/role — incomplete; not a recommendation.

MMM3MALBAlbemarleAAAlcoaADMArcher Daniels MidlandBASFYBASFBGBungeCATCaterpillarCENXCentury AluminumLNGCheniere EnergyCVXChevronCLFCleveland-CliffsCOPConocoPhillipsCTVACortevaDOWDowDDDuPontLLYEli LillyXOMExxon MobilFFordGEVGE VernovaGMGeneral MotorsHYMTFHyundai MotorJNJJohnson & JohnsonLYBLyondellBasellMRKMerck

Confidence: high · Policy alerts

Key directives

  • Impose 25% tariff on all goods of Brazil
  • Exempt products identified in Annex from tariff
  • Modify Harmonized Tariff Schedule of the United States as provided in Annex
  • Publish memorandum in Federal Register

Who is ordered

Timeline

Immediate

  • 25% tariff imposed on all goods of Brazil
  • Harmonized Tariff Schedule modifications directed for exempted products

Near term (90d)

  • Trade Representative to implement tariff and exemption modifications
  • Federal Register publication

Long term

  • Ongoing Section 301 consultations with Brazil
  • Potential escalation or resolution depending on Brazilian policy changes
  • Supply chain adjustments for affected industries

Risks & tensions

  • Broad 25% tariff on all Brazilian goods risks significant bilateral trade disruption and retaliation
  • Exemption criteria (domestic supply unavailability, economy-wide disruption, insufficient U.S. production) suggest awareness of U.S. vulnerability to supply shocks
  • Ethanol exemption likely politically sensitive given Iowa/corn-state interests; text does not explicitly confirm ethanol exemption but investigation included ethanol market access
  • Brazil may challenge at WTO or retaliate against U.S. exports
  • Annex not fully reproduced in provided text—specific exempted products unknown from excerpt
Presidential Memorandum: Action by the United States in the Investigation Under Section 301 of the Trade Act of 1974 of Brazil's Acts, Policies, and Practices Related to Digital Trade and Electronic Payment Services; Unfair, Preferential Tariffs; Anti-Corruption Enforcement; Intellectual Property Protection; Ethanol Market Access; and Illegal Deforestation · Executive Orders