Brazil Secures Temporary Reprieve from U.S. Tariff Hike, Averting Immediate Trade Crisis

Brazil narrowly avoided a disruptive escalation in trade tensions with the U.S. after Washington granted last-minute exemptions to key exports. Critical industries—including aerospace manufacturer Embraer and citrus producers—retained their 10% tariff rate instead of facing a threatened 50% duty. The reprieve, now delayed until next week, came as a surprise to Brasília given strained diplomatic channels.

President Lula da Silva's administration bypassed traditional diplomacy, deploying corporate leaders to lobby U.S. officials directly. The MOVE preserved Brazil's judicial independence amid Washington's pressure to interfere in former President Bolsonaro's legal proceedings. Market observers note the temporary solution merely postpones a reckoning—Brazil must now convert this pause into durable trade terms with its second-largest export partner.