On November 20, 2025, the White House issued an Executive Order marking a significant shift in U.S. trade policy toward Brazil. This action updates the measures originally imposed under Executive Order 14323 from July 30, 2025, which had established a 40% additional ad valorem duty on certain Brazilian goods under the International Emergency Economic Powers Act (IEEPA) due to concerns over Brazil’s policies and practices impacting U.S. national security and foreign policy.
Key Changes
Updated CSMS guidance reflects the changes made by the Order. Specifically:
- Certain agricultural products are now exempt from the 40% duty. This exemption reflects progress in ongoing negotiations between U.S. and Brazilian officials and aims to ease pressure on sectors where reciprocal trade benefits are emerging.
- The updated Annex I to Executive Order 14323 lists 238 Harmonized Tariff Schedule (HTSUS) classifications and 11 additional categories of agricultural goods that will no longer be subject to the Brazil tariffs. These include items such as tropical fruits, acai, coconut water, and certain baked goods for religious purposes.
- Importers should use HTS heading 9903.01.81 or 9903.01.90 when declaring exempt goods to ensure proper treatment at entry.
Effective Date
The exemptions apply retroactively to goods entered for consumption on or after November 13, 2025, at 12:01 a.m. EST. Importers who have already deposited duties may seek refunds through post-summary corrections or protests.
The Husch Blackwell International Trade team continues to monitor developments and will provide additional updates as they arise.