- 40% Tariff Implementation: On July 30, 2025, President Trump signed an Executive Order imposing a 40% ad valorem duty on Brazilian-origin imports, effective August 6, 2025. This new tariff will be in addition to existing tariffs, excluding Section 232 tariffs, and will not apply to specific exempt products such as civilian aircraft, aluminum, and select agricultural goods.
- Business Impact and Compliance: Affected businesses are advised to assess the new tariff’s implications on their import strategies, supply chains, and pricing models. They should explore alternative sourcing options and consider valuation planning to manage the increased duties, while also ensuring compliance with the Executive Order.
- Consultation with Advisors: Companies should consult with legal and trade advisors to navigate the complexities of the new tariff structure, identify potential mitigation strategies, and ensure compliance, particularly regarding valuation and related-party transactions.
Source EY
