By: Brian Walczyk, Compliance Manager, TadeInsights, LCB, CCS

President Trump issued an Executive Order this afternoon, July 30^th, imposing an additional 40% ad valorem tariff on certain imports from Brazil, slated to start for goods entered for consumption, or withdrawn from warehouse for consumption, on August 6^th.

There is a transit exemption where the additional 40% will not apply to goods that are loaded and in transit on a vessel before 1201 EST Aug 6 and are entered before 1201 EST Oct 5.

The 40% is in addition to the current IEEPA Reciprocal rate of 10%, bringing the total to 50% for qualifying goods.

Certain goods will not have the new 40% tariff applied, such as aircraft and their parts, orange juice, Brazil nuts, iron ore, pig iron, oil products, and items subject to Sec 232 actions. There is a full list of exempted goods in the Annex I & II of the EO.

The IEEPA order is in response to policies, practices, and actions of the Brazilian government that threaten the economy, foreign policy, and national security of the U.S.

We will continue to provide updates as they are made available. Please contact your V. Alexander account team, or you may also contact our Trade Compliance team at tradeinsights@valexander.com with any questions, and you can always follow us on our website www.valexander.com for updates on this and other topics.