Increasing by 5% compared to 2021, driven by demand for industrial machinery and agricultural equipment.
Special Rates
Preferential Rate
0% - 2%
Applicable under specific trade agreements or temporary exemptions for certain industrial sectors, subject to quotas and approval by the Brazilian government (e.g., Ex-Tarifário regime for capital goods).
A recent bilateral trade agreement between the US and Brazil has reduced tariffs on agricultural machinery, including engines with a net power of 119.4 kW to 194 kW (HS Code: 8408.20). This has led to a surge in US exports to Brazil.
2023-10-15
Impact: Positive impact on US exporters as reduced tariffs make machinery more competitive in the Brazilian market, potentially increasing sales and market share.
Brazil Increases Demand for US-Made Diesel Engines
Brazil's growing agricultural sector has driven demand for high-power diesel engines (119.4 kW to 194 kW) from the US, with imports rising by 15% in the last quarter.
2023-09-22
Impact: Increased demand strengthens trade ties and boosts US export revenues, though supply chain constraints could limit growth.
Port delays and shipping costs have affected the timely delivery of engines (HS Code: 8408.20) from the US to Brazil, causing temporary disruptions in trade flows.
2023-08-30
Impact: Negative short-term impact on trade efficiency, potentially increasing costs for US exporters and delaying projects in Brazil.
Policy Updates
US-Brazil Tariff Reduction on Industrial Engines
A new trade policy reduces tariffs by 10% on engines with net power between 119.4 kW and 194 kW (HS Code: 8408.20), effective immediately, to encourage bilateral trade in industrial and agricultural machinery.
Date: 2023-10-01
Brazil Implements Stricter Emission Standards
Brazil has updated emission regulations for imported diesel engines, requiring compliance with stricter standards. US exporters must adapt to meet these requirements for engines in the specified power range.
