BRASILIA, Feb 24 (Reuters) - Brazil's government on Tuesday welcomed a decision by Washington to allow Brazilian aircraft to enter the United States duty-free, down from 10% previously, amid recent changes to U.S. trade policy. The move benefits Brazil's aerospace sector, led by planemaker Embraer , which had faced a competitive disadvantage to rivals such as Canada's Bombardier and France's Dassault Aviation, whose jets already entered the U.S. tariff free. Aircraft were Brazil's third-largest export to the U.S. in 2024 and 2025, the Ministry of Development, Industry and Foreign Trade said in a statement, highlighting the sector's high value added and technological intensity. Following the latest tariff adjustments by Washington, the ministry estimated that about 25% of the country's exports to the United States, roughly $9.3 billion as of 2025, are now subject to a 10% global tariff, putting those Brazilian goods on equal footing with products from other countries. Before the changes, around 22% of Brazilian exports to the U.S. market faced additional tariffs of 40% or 50%, the ministry said. "In the agricultural sector, products such as fish, honey, tobacco and soluble coffee will also see tariffs fall from 50% to 10%, allowing them to compete under conditions equivalent to other international suppliers," the ministry said. The government had previously welcomed the U.S. Supreme Court ruling that struck down President Donald Trump's sweeping tariffs as it removed levies specifically targeting Latin America's largest economy. According to the ministry, 46% of Brazilian exports to the U.S. in 2025 will no longer face any additional tariffs, while 29% remain subject to duties imposed under Section 232, affecting sectors such as steel, aluminum, wood, copper and furniture. The United States is Brazil's second-largest trading partner after China, but unlike Brazil's large goods surplus with China, it has posted a deficit with the U.S. for years, totaling $7.5 billion in 2025, according to the ministry. (Reporting by Marcela Ayres; Editing by Chris Reese and Lincoln Feast) View Comments
Brazil hails zero US tariff on aircraft exports
You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more
Start Your Free Trial Now!Download Free Report – Explore 3 Stock Ideas & Industry Insights
Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.
All investments involve risk—consider independent advice before making any investment decisions.
View 3 Research ReportsThis information, including any data, is sourced from Unicorn Data Services SAS, trading as EOD Historical Data (“EODHD”) on ‘as is’ basis, using their API. The information and data provided on this page, as well as via the API, are not guaranteed to be real-time or accurate. In some cases, the data may include analyst ratings or recommendations sourced through the EODHD API, which are intended solely for general informational purposes.
This information does not consider your personal objectives, financial situation, or needs. Kalkine does not assume any responsibility for any trading losses you might incur as a result of using this information, data, or any analyst rating or recommendation provided. Kalkine will not accept any liability for any loss or damage resulting from reliance on the information, including but not limited to data, quotes, charts, analyst ratings, recommendations, and buy/sell signals sourced via the API.
Please be fully informed about the risks and costs associated with trading in the financial markets, as it is one of the riskiest forms of investment. Kalkine does not provide any warranties regarding the information on this page, including, without limitation, warranties of merchantability or fitness for a particular purpose or use.
Please wait processing your request...