Brazilian Oil Trade with U.S. Resumes Amidst Tariff Exemptions

Energy companies in Brazil are preparing to resume oil exports to the United States following an exemption for oil from newly imposed U.S. tariffs, according to the Brazilian oil lobby group IBP.

Oil, Brazil's principal export to the U.S., was exempt from a 10% tariff introduced in April, but uncertainty surrounded its inclusion in new tariffs announced on July 9. The uncertainty led to a shipping halt for most of the month. However, while President Trump imposed a new 50% tariff, several Brazilian exports including oil were excluded, allowing shipments to resume.

Following earlier uncertainty, companies had to store oil temporarily, but with the exemption, shipments will resume. Brazil exported 1.78 million barrels daily in 2024, with 243,000 bpd going to the U.S. IBP President Roberto Ardenghy emphasized that redirecting oil due to tariffs would have been detrimental.

(With inputs from agencies.)