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Tariff hike: US excludes 471 products from new 12.5% tariff

The United States has released a list of 471 Brazilian products that will be exempt from the new 12.5 percent surcharge imposed over alleged failures to combat forced labor. Among the items excluded from the measure are coffee, oil, natural gas, fertilizers, lumber, orange juice, and açaí products. The list was published on Thursday (Jul. 23) by the Office of the United States Trade Representative (USTR) and includes exemptions covering 20 major product categories. Notícias relacionadas:Tariff hike: New 12.5% US tariff on Brazilian products takes effect.Brazilian companies hit by US tariff hike to have BRL 18.5B in aid.Tariff hike: US builds false narrative around big tech, experts say.The new tariff took effect early Friday morning (24). For products not included on the list of exemptions, the additional surcharge will be added to the 25 percent tariff imposed by the US since Wednesday (22), raising the total tariff rate to 37.5 percent on some Brazilian exports. What was left out The list of exemptions includes products considered strategic to trade between Brazil and the United States, as well as inputs used by US industry. Among the main exempt items are: coffee; petroleum and petroleum products; natural gas; fertilizers; wood and wood products; orange juice; açaí products; pesticides; leather and hides; pig iron; aluminum waste and scrap; semiconductor manufacturing equipment; certain medications and pharmaceutical ingredients; works of art, antiques, and collectibles. Also excluded were various industrial inputs, minerals, metal waste, and products used in the technology and pharmaceutical industries. How it works The new surcharge was announced following an investigation by the US government under Section 301 of the US Trade Act. According to the USTR, Brazil is among a group of countries that, in the US assessment, lack sufficient mechanisms to prevent the importation of products manufactured using forced labor. Despite this, the US government decided to exempt hundreds of products from the tariff measure. According to the agency, the exemptions take into account factors such as the importance of certain inputs to the US economy, existing trade commitments, and the specific characteristics of certain markets.