In a move aimed at addressing what it calls 'unfair trading practices,' the United States has announced a new 25% tariff on various imports from Brazil. The tariff, set to take effect on July 22, follows a year-long investigation into Brazil's trade policies. However, a range of products including beef, coffee, and certain aircraft parts will be exempted from the tariff.
US Trade Representative Jamieson Greer stated that Brazil's practices have prevented US workers and producers from accessing the Brazilian market. The US remains open to negotiations with Brazil to resolve the identified issues. The tariff was justified under Section 301 of the Trade Act, which the Trump administration has used to initiate other probes this year.
The US official highlighted adverse actions on digital trade and unfair competition linked to Brazil's state-owned electronic payments system, PIX, among other concerns. The US is seeking preferential tariff treatment similar to what Brazil provides to partners like Mexico and India.
While the Trump administration does not expect retaliation, it warned that pushback could invite further US countermeasures. Constructive talks have been held with Brazilian counterparts recently. At a public hearing, Brazilian conservative presidential hopeful Flavio Bolsonaro urged the US against imposing the new tariffs, arguing it would benefit his political rival, President Luiz Inacio Lula da Silva.
Last year, the Trump administration imposed sharp tariffs on Brazil over the coup trial against Jair Bolsonaro, who is now serving a 27-year sentence. Many of those duties were rolled back after talks between both sides.
