🇵🇾 Paraguay vs 🇧🇷 Brazil Tariffs — Import Duty Comparison (2026)

Comparing import tariffs between Paraguay and Brazil reveals key differences that can significantly impact landed costs for US importers.

Paraguay has a lower effective tariff rate (10%) compared to Brazil (12.5%), a difference of 2.5%.

Both countries export Soybeans, Beef, Sugar to the United States, creating direct competition in these sectors.

In terms of trade volume, Paraguay accounts for approximately $1.5B in bilateral trade with the US, compared to Brazil's $92B.

Both countries are subject to the Section 301 forced-labor tariff that replaced the flat 10% Section 122 rate on July 24, 2026 — a two-tier 10%/12.5% duty on roughly 60 economies (about 99.4% of US imports by value), broader than the earlier 46-country proposal. Section 122 had itself replaced the IEEPA tariffs struck down by the Supreme Court. In August 2026, 25 states sued to block the forced-labor tariff, but CBP continues collecting it while the case proceeds.

Paraguay's advantages include: Lower overall tariff rate (10% vs 12.5%); Unique export categories: Electricity, Corn, Leather. Brazil's advantages include: Higher US trade volume ($92B vs $1.5B); Unique export categories: Crude oil, Iron ore, Coffee.

For most product categories, Paraguay currently offers lower import costs due to its tariff advantage. However, importers should consider factors beyond tariffs including shipping costs, lead times, quality standards, and supply chain reliability.