US decree imposes 50% tariff on Brazilian tobacco

The tobacco industry received with great concern the United States' confirmation of a 50% tariff on imports of Brazilian tobacco, effective August 6th. Currently, the United States accounts for approximately 9% of the Brazilian tobacco market, making it the third-largest importer in both volume and value. According to data from the Ministry of Development, Industry, and Commerce (MDIC/ComexStat), between January and June 2025, Brazil exported 19 tons of tobacco to the United States, generating US$129 million in revenue. In 2024, the total exported total was 39,8 tons, generating US$255 million in foreign sales.

According to Valmor Thesing, president of the Interstate Tobacco Industry Union (SindiTabaco), the initial expectation was that there would be negotiations or an extension of the deadline, but this did not occur. "Maintaining the tariff creates a very complex situation, and the competitiveness of Brazilian products in the North American market is threatened. We can expect, as a consequence, a drastic reduction in volumes exported to American customers," he states.

However, the industry representative assures that no layoffs are expected. Thesing also states that tobacco already contracted with producers through the Integrated Tobacco Production System (SIPT) will be purchased normally by the integrating companies, according to the rules of the integration contracts. "Since SindiTabaco member companies work with the Integrated System, we offer this guarantee and security to producers regarding the acquisition of the volume already contracted," he reinforces. 

Of the 2025/2026 harvest already contracted with producers, approximately 40 tons were forecast for business with the United States. "If it's not possible to immediately reallocate this volume to other markets, it will remain stored in Brazil," explains the executive. "However, we expect to redirect the amount that would have been exported to the United States to other destinations in the coming months, as we export to over 100 countries," adds Valmor Thesing.