US announces new 25% tariffs on Brazil for ‘unfair’ trade practices

The United States is set to impose a 25% tariff on specific Brazilian imports, citing "unfair" trade practices identified during a yearlong investigation. United States Trade Representative Jamieson Greer announced the measures, stating that Brazilian policies negatively impact American interests in areas such as digital trade, preferential tariffs, and ethanol market access.

These tariffs, initially proposed last month, will take effect on July 22. However, certain goods, including raw materials, pharmaceuticals, and coffee, will be exempt if they are critical for supply chains and not produced domestically in the US. Greer indicated that the US remains open to further negotiations with Brazil to resolve the ongoing trade disputes.

Secretary of State Marco Rubio expressed strong criticism of Brazilian President Lula's administration, writing on X that "President Lula and his government have not negotiated with the US in good faith." He added, "His economic policies are bad for Americans and bad for Brazilians. For the past year, Lula has put his own ego ahead of making a deal for the welfare of the Brazilian people, and these tariffs are the price for that."

The US initiated the investigation last July under Section 301 of the Trade Act of 1974, a provision designed to address foreign practices that affect US commerce and competitiveness. This action comes as the US goods trade surplus with Brazil significantly increased by 112.8% last year, reaching $14.4 billion.

“

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. For the past year, Lula has put his own ego ahead of making a deal for the welfare of the Brazilian people, and these tariffs are the price for that.