The United States will impose a 25% tariff on certain imports from Brazil, citing a range of unfair trade practices by the world’s 10th-largest economy. The tariffs, initially proposed last month, are scheduled to take effect on July 22.
The U.S. Trade Representative’s office concluded an investigation lasting over a year, finding that Brazil engaged in practices considered unreasonable and unfair, including lax anti-corruption enforcement and imposing its own unfair tariffs. Despite these findings, the U.S. has maintained a goods trade surplus with Brazil for years.
Jamieson Greer, U.S. Trade Representative, stated that the action is necessary to ensure American workers and companies can compete on a level playing field. "Extensive negotiations with Brazil over the past year have not resolved these issues, but we remain open to continuing negotiations with Brazil to bring about long-needed changes to the problems identified in this investigation," Greer said.
Some goods have been exempted from the tariffs, including coffee, beef, oranges and orange juice, certain oil and gas energy products, and aerospace parts and components. These exemptions apply to products not produced in the U.S. or those officials believe could disrupt supply chains.
The imposition of tariffs is authorized under Section 301 of the Trade Act of 1974, which permits the U.S. to investigate trading partners' practices. This action follows a period where the U.S. Supreme Court limited the scope of tariffs previously imposed by the Trump administration under a different law, the International Emergency Economic Powers Act (IEEPA) of 1977.
Brazilian President Luiz Inácio Lula da Silva expressed indignation following the U.S. announcement of proposed tariffs in early June, suggesting political motivations and pointing to his rival in the country's October elections, Senator Flávio Bolsonaro. Secretary of State Marco Rubio commented on X, stating, "Let there be no confusion about why: President Lula and his government have not negotiated with the US in good faith. His economic policies are bad for Americans and bad for Brazilians."