Brazil sees 35.9% of exports to US facing steeper tariff, sources say

Brazil estimates that 35.9% of its exports to the United States, by value, will be hit by a steep 50% tariff under an executive order issued on Wednesday by the Trump administration, two sources familiar with the matter told Reuters.

According to the sources, who spoke on condition of anonymity, the Ministry of Development, Industry, Trade and Services, which is leading trade negotiations with the U.S., is expected to unveil the figure later in the day.

Trump slapped the 50% tariff to fight what he has called a "witch hunt" against former President Jair Bolsonaro, but softened the blow by excluding sectors such as aircraft, energy and orange juice from heavier levies.

The Brazilian government will also report that another 44.6% of local products will be subject to the preexisting 10% tariff, while the remaining 19.5% will fall under tariffs the U.S. applies globally, ranging from 25% to 50%, added the sources.

The MDIC did not immediately respond to a request for comment.