By Alimat Aliyeva
Energy companies operating in Brazil have suspended oil exports to the United States following Washington’s decision to impose 50% import duties on Brazilian oil, Azernews reports.
Reuters reported this development, citing a statement from Roberto Ardenga, the head of the Brazilian Petroleum Institute (IBP).
This week, U.S. President Donald Trump signed an executive order imposing new tariffs on oil imports from Brazil. The order explains that the tariffs were introduced in response to actions that, according to U.S. authorities, could undermine the country's interests.
The IBP represents Brazil’s largest oil and gas players, including Petrobras, Shell, TotalEnergies, ExxonMobil, and Equinor.
Oil remains Brazil’s most significant export to the U.S., making this move a significant blow to both countries’ energy trade.
The imposition of such steep tariffs highlights the growing tensions between global trade relationships, particularly in the energy sector. With oil being a vital resource for both the U.S. and Brazil, this move could spur both countries to reconsider their energy strategies, especially as global oil markets remain volatile. This could also prompt Brazil to seek new markets for its oil, potentially strengthening its ties with China and other emerging economies, which have been increasingly active in securing energy supplies from Latin America. Meanwhile, U.S. oil producers may find themselves with less competition but could face higher prices due to the reduced supply of Brazilian oil. The long-term implications for global oil trade are yet to be fully understood.
