Last week, the United States government announced the imposition of a 50% tariff on products imported from Brazil, aimed at reinforcing a political dispute and impacting key sectors of the Brazilian economy. This measure, which affects everything from agricultural commodities to manufactured items and aircraft, can increase input costs and reduce the competitiveness of Brazilian exporters in the American market. Below, we present some strategies to minimize the impact of this fee and keep your operations profitable.
An efficient way to reduce the rate is to move manufacturing or assembly stages to countries that have favorable trade agreements with the U.S. - such as Mexico or Canada, beneficiaries of the USMCA (United States-Mexico-Canada Agreement). Upon final assembly in eligible territory, the product is considered “North American origin” or “USMCA origin” and is therefore exempt from the 50% fee.
Another strategy is to form alliances with or acquire stakes in established American companies. This creates a co-manufacturing or local subsidiary process, allowing your products to receive the “Made in USA” seal and thus evade the import tariff.
Reviewing your supply chain and selecting U.S. entry points in Foreign‑Trade Zones (FTZ) allows products to be imported, stored, and processed without immediate payment of fees. Only when the goods leave the FTZ for the domestic market does the rate become applicable - and, in some cases, it may even be waived if there is a significant transformation of the product.
The 50% tariff imposed on Brazilian products in the USA represents a significant but not insurmountable challenge. Adapting production, establishing local partnerships, and recreating your logistics are viable ways to maintain your competitiveness, protect margins, and continue growing in the American market.
If you want to understand the topic even better, at AdvizeOne we offer strategic advice to structure your company in the USA and implement solutions such as:
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