US government removes surcharge on Brazilian cellulose and ferronickel

The United States government has decided to remove the surcharge on Brazilian exports of cellulose and ferronickel, the Ministry of Development, Industry, Commerce and Services (MDIC) confirmed this Thursday (11). These items had already been excluded from the 50% tariff increase imposed last month by President Donald Trump, but were still subject to an additional 10% rate imposed in April by the White House.

However, with the change, they now enter the North American market without this tariff barrier. According to data from the Ministry of Industry and Trade (MDIC), Brazil exported approximately US$1.84 billion worth of cellulose and ferronickel to the United States last year, representing 4.6% of the total shipped to the country.

The main highlight was cellulose, especially in the categories of “non-coniferous wood chemical pulps” and “coniferous wood chemical pulps”, responsible for US$ 1.55 billion.

With the decision, the exempted products join others already exempt from additional tariffs, representing 25.1% of Brazilian exports to the United States. In contrast, ten other items also had the 10% tariff removed, but remain subject to the 40% tariff specifically levied against Brazil.

This group includes raw minerals, nickel and herbicides, which generated approximately US$113 million in sales to the North American market last year.

"The government remains committed to reducing the incidence of US tariffs on Brazilian products. The latest US executive order represents a step forward, especially for Brazil's pulp sector. But there is still much to be done, and we continue working towards this," stated Geraldo Alckmin, Vice President and Minister of the Ministry of Education and Culture (MDIC).

Despite the measure, items such as Brazilian coffee and cocoa remain subject to the 50% tariff increase, with no change to current rules. For the agricultural sector, this limits some of its competitiveness relative to other exporters.

In a statement, the Ministry of Internal Affairs (MDIC) also reported that 76 Brazilian products are now subject only to Section 232 tariffs of the U.S. Trade Act, with no new additional surcharges. Another seven items, related to chemical inputs and industrial plastics, will also be subject to a 10% tariff, in addition to the 40% already applied exclusively to Brazil. This group accounted for approximately US$145 million in exports to the United States in 2024.

The decision to remove the surcharge comes amid the Supreme Federal Court's conviction of former President Jair Bolsonaro (PL) for an alleged coup attempt. New sanctions against Brazil are expected, following the example of the 50% tax, for which Donald Trump cited the ruling as one of the reasons .

The day before, Trump stated he was dissatisfied with the outcome, while Secretary of State Marco Rubio signaled the possibility of adopting new sanctions against Brazil . "The United States will respond appropriately to this witch hunt," he stated.

"I watched the trial, I know him very well. As a foreign leader, I thought he was a good president. It's very surprising that this could happen. It's very similar to what they tried to do to me, but they absolutely failed," Trump declared.

The US president and Rubio did not say what additional measures would be taken against Brazil.