U.S. President Trump plans to impose 50% tariffs on all Brazilian products starting August 1, impacting exports like oil, coffee, beef, orange juice, aircraft, timber, machinery, engines, and electronics. The U.S. is a key market for Brazil, especially in coffee, beef, and orange juice, with significant potential economic repercussions.

With Brazil being the world’s largest coffee exporter and the U.S. accounting for 16.7% of Brazil’s coffee exports, the new tariffs may force U.S. coffee roasters to source beans elsewhere and Brazil to redirect shipments to Europe and Asia. This could disrupt the global coffee market and affect both countries’ economies.

The U.S. is the second-largest market for Brazilian beef, with tariffs expected to impact meatpacker revenues. However, major meatpackers like JBS and Marfrig, which have operations in the U.S., may be less affected. Beef prices in the U.S. are already at record highs and could increase further due to the tariffs.

The new tariffs could severely impact Brazil’s orange juice industry, as the U.S. accounts for 41.7% of Brazilian orange juice exports. Industry group CitrusBR warned that the tariffs would be unsustainable, leading to a decline in shipments to the U.S. and affecting profit margins in the sector.

Brazil’s oil exports to the U.S. could face a modest loss from the tariffs, as the sector has the flexibility to redirect shipments. The U.S. is not heavily reliant on Brazilian oil, consuming less than 3% of its total. However, the tariffs could still have some impact on both countries’ economies.

Brazil’s aircraft industry, particularly Embraer, could be significantly affected by the tariffs, as the U.S. is a major market for its planes. Timber exports from Brazil to the U.S. could also face challenges, making Brazilian forest products less competitive compared to other nations like Canada and Chile.

The U.S. is a crucial market for Brazil’s machinery, engines, and electronics, with around 60% of exports in these industries going to the U.S. The tariffs will hurt companies like motor maker WEG, impacting the Brazilian economy and potentially leading to shifts in global trade patterns.

Read more at Yahoo Finance: Factbox-How a 50% US tariff rate could affect Brazilian exports