The United States is imposing 25% tariffs on certain imports from Brazil, the world's 10th-biggest economy. The action, announced by U.S. Trade Representative Jamieson Greer, follows a year-long probe into alleged unfair trade practices. Brazil is the first country targeted under President Donald Trump's new tariff strategy utilizing Section 301 of the Trade Act. These new duties replace previous ones that were struck down by the Supreme Court.
The USTR stated that Brazilian policies regarding digital trade, tariffs, intellectual property, ethanol access, and deforestation burden U.S. commerce. Secretary of State Marco Rubio claimed the Brazilian government did not negotiate in good faith and that President Luiz Inacio Lula da Silva prioritized his own ego over the welfare of the Brazilian people, calling his policies bad for both Americans and Brazilians. Greer noted that extensive negotiations over the past year failed to resolve the issues, though the U.S. remains open to further talks.
The office of President Lula da Silva repudiated the decision, denying that Brazil engaged in unfair trade practices. While the tariffs apply to thousands of imports, coffee, beef, and certain ethanol products will be exempt from the new duties.
Additionally, a separate U.S. probe into forced-labor enforcement could see an additional 12.5% duty imposed on Brazilian goods. A decision regarding this additional duty is due next week.