Brazil Strikes EU Trade Deal, Navigates Trump Tariffs and Seeks Rare Earths Partnership Amid Global Economic Shifts
19 January 2026

Brazil Strikes EU Trade Deal, Navigates Trump Tariffs and Seeks Rare Earths Partnership Amid Global Economic Shifts

Brazil Tariff News and Tracker

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Welcome to Brazil Tariff News and Tracker, where we break down the latest on US trade policies hitting Brazil's markets.

In a major development, the EU and Mercosur bloc—including Brazil, Argentina, Paraguay, and Uruguay—signed a landmark free trade agreement on January 17 in Asuncion, Paraguay, after 25 years of talks. According to the Associated Press and EU Trade Commissioner Maroš Šefčovič, the deal eliminates over 90% of tariffs on goods, covering a market of 780 million consumers and €111 billion in annual trade. Brazilian President Luiz Inácio Lula da Silva called it a win for multilateralism, posting on X that it counters protectionism amid global fragmentation. This comes as Trump escalates US tariffs on Europe, with Eurometal reporting a 10% rate on eight European countries starting February 1, rising to 25% by June 1.

For Brazil specifically, the Trump 2.0 Tariff Tracker from Trade Compliance Resource Hub shows a 10% reciprocal tariff implemented since August 7, 2025, plus a 40% penalty on certain goods tied to free speech issues, with exemptions for specific HTSUS subheadings. Brazil fully met its US beef export quota in record time, per Euromeatnews, aided by a 26.4% tariff and US beef shortages from policy shifts. Meanwhile, the Financial Times reports US officials are in preliminary talks with Brazil for a rare earths partnership to cut China reliance, involving government, industry, and financiers—Brazil holds the world's second-largest untapped reserves. A USTR Section 301 probe into Brazil's digital trade, tariffs, and deforestation is ongoing, with hearings set for September 2025.

These moves signal Brazil navigating US pressures while opening doors with Europe, potentially boosting critical minerals exports.

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