Brazil has decried a new U.S. tariff of 25% on certain imports, vowing to impose reciprocal tariffs against U.S. products and pursue the matter through the World Trade Organization.
The U.S. announced the tariffs on Wednesday, stating they would take effect July 22 and were being imposed due to unfair trade practices by Brazil, the world's 10th-largest economy. The order exempts goods not produced in the U.S. or those that could disrupt supply chains, including coffee, beef, oranges, orange juice, and aircraft components.
In a statement, the office of Brazilian President Luiz Inácio Lula da Silva refuted the U.S. allegations. It stated that 76% of imports from the United States entered Brazil duty-free in 2025 and that the average tariff applied to U.S. products was only 3.1%. Brazil has initiated procedures to impose reciprocal tariffs and other trade countermeasures, citing a reciprocity law and the WTO's dispute settlement mechanism.
U.S. officials have previously cited large trade deficits with other nations as justification for tariffs. However, Brazil has historically maintained a trade surplus with the United States. Last year, U.S. exports to Brazil exceeded imports by nearly $42 billion.
Last July, the Trump administration first imposed a 50% tariff on Brazilian imports, citing a "witch hunt" against former President Jair Bolsonaro. Those tariffs were later rescinded. At that time, Trump also accused Brazil of unfair trade practices and directed the U.S. Trade Representative to initiate an investigation. This led to charges against Brazil in June for lax anti-corruption enforcement and unfair tariffs.
President Lula's office rejected the legitimacy of investigations not grounded in multilateral trade rules, suggesting the latest tariffs are connected to the Bolsonaro family. U.S. Secretary of State Marco Rubio stated on X that the tariffs resulted from President Lula prioritizing "his own ego ahead of making a deal" and not negotiating in good faith. Brazil's government denied this, asserting it "never left the negotiating table."
The newly imposed tariffs are expected to increase tensions between the two countries ahead of Brazil's presidential elections in October, where President Lula is anticipated to face Senator Flávio Bolsonaro, Jair Bolsonaro's son. Flávio Bolsonaro has reposted Rubio's statement, criticizing President Lula's leadership and calling him "the Brazilian Biden."