IEEPA Update: What the Latest U.S.–Brazil Tariff Changes Mean for Importers and Exporters

On November 20, 2025, the White House announced a significant adjustment to the tariffs imposed earlier this year on Brazilian goods. The modification narrows the scope of the additional 40 percent ad valorem duty introduced under Executive Order 14323, “Addressing Threats to the United States by the Government of Brazil,” issued on July 30, 2025. The full text of the modification to the July 30, 2025 Executive Order can be found here: https://www.whitehouse.gov/presidential-actions/2025/11/modifying-the-scope-of-tariffs-on-the-government-of-brazil/

That earlier order invoked national-security and foreign-policy powers under the International Emergency Economic Powers Act (IEEPA) and declared that certain acts of the Brazilian government—particularly efforts to compel U.S. companies to censor political speech or share U.S. user data—constituted “an unusual and extraordinary threat” to U.S. interests. The result was a sweeping 40 percent surcharge on many Brazilian exports. Now, just months later, the United States has partially rolled back that action.

What Changed in November

The November 20 order modifies the scope of those tariffs and adds a new Annex II to the Harmonized Tariff Schedule. Effective for goods entered on or after November 13, 2025, many agricultural and food products are now exempt from the additional 40 percent duty. It is important to note that the Annex I and Annex II referenced above only include the newly modified list of excluded products from Brazil. The full list can be found here: https://www.whitehouse.gov/wp-content/uploads/2025/09/ANNEX-II.pdf

The exemption list covers a wide range of goods, including:

Fresh, chilled, or frozen beef and edible offal (HTS 0201–0210)Tomatoes and tropical roots such as cassava and yautia (HTS 0702, 0714)Fruits and nuts, including coconuts, Brazil nuts, bananas, pineapples, mangoes, papayas, and guavas (HTS 0801–0811)Coffee, tea, and spices (HTS 0901–0910)Cereals, flours, and starches such as barley, fonio, and cassava flour (HTS 10–11)Copra and coconut oil (HTS 1203, 1513)Cocoa, chocolate, and baked goods (HTS 18–19)Preserved fruits, fruit juices, and beverages including coconut water (HTS 20–22)Fertilizers based on nitrogen, phosphate, and potash (HTS 31)

Notably absent from the exemption list are all seafood products (HTS 03), meaning importers in the seafood sector remain subject to the additional 40 percent duty.

Why It Matters

This move signals a shift from blanket sanctions to targeted diplomacy. The United States appears willing to lift economic pressure where negotiations with Brazil show progress, particularly in agriculture and food supply chains. But sectors that are politically or strategically sensitive—including industrial goods and seafood—remain under the enhanced duty structure.

For U.S. importers, classification accuracy is now crucial. Only goods properly classified under the exempt 8-digit HTS subheadings qualify for relief. Mistakes could trigger costly assessments.

The Bigger Picture

This episode reflects how trade and national-security policy continue to intersect. The July 2025 Executive Order blended free-speech and digital-governance concerns with economic measures—an approach increasingly used to pressure foreign governments beyond traditional trade disputes.

Businesses involved in U.S.–Brazil commerce should expect this framework to remain fluid. Future modifications may broaden or narrow the list again depending on Brazil’s compliance or diplomatic engagement.

Practical Steps for Businesses

1. Audit your classifications and confirm that every Brazilian import is coded accurately at the 8-digit HTS level.

2. Check entry dates. The exemption applies only to goods entered on or after November 13, 2025.

3. Explore refund opportunities for duties already paid on newly exempt goods.

4. Stay alert for additional modifications or enforcement actions.

5. Seek legal guidance early. The intersection of trade law and national-security powers (IEEPA, NEA, Trade Act) can create complex compliance questions.

Closing Thoughts

The November 2025 action marks a recalibration, not a retreat. While the United States is easing tariffs on key agricultural goods, it continues to use trade measures as leverage in broader diplomatic disputes. For importers and exporters, the message is clear: trade compliance is now inseparable from foreign-policy risk management.

At VAdam Law, we assist importers, exporters, and trade professionals navigating IEEPA-based tariff actions, refund procedures, and compliance planning under these evolving frameworks. Arrange a complimentary consultation using our convenient scheduling portal or reach us anytime at (954) 451-0792 or office@vadamlaw.com.