US has moved to impose a new 25% tariff on a wide range of imports from Brazil, citing unfair trade practices spanning digital commerce, environmental policy and market access restrictions.
According to top trade official Jamieson Greer, the move reflects long-standing concerns over Brazil’s trade practices and regulatory environment.
The proposed measures, announced under Section 301 of US trade law, follow the conclusion of a year-long investigation into Brazil’s economic and regulatory practices.
The Office of the United States Trade Representative (USTR) mentioned that the findings covered several sectors, including electronic payment systems, intellectual property protections, preferential tariff structures and ethanol market access.
They argued that Brazil’s policies in these areas place an unreasonable burden on US commerce, making them actionable under Section 301(b) of the Trade Act.
The investigation, launched last year, was part of a broader push by Washington to reassess trading relationships it considers structurally imbalanced or discriminatory.
However, the tariff plan includes notable exemptions. Key Brazilian exports such as beef, coffee, rare earth minerals, selected metals and aircraft components will not be subject to the proposed 25% duties.
According to government officials, these exclusions were designed to avoid disruptions in critical supply chains and industrial inputs.
Office of the United States Trade Representative (USTR) confirmed that the new tariffs would partially replace earlier duties imposed on Brazilian goods, including a 50% tariff introduced last year under President Donald Trump.
Of that earlier package, 40% had been linked to punitive measures related to Brazil’s legal proceedings against former president Jair Bolsonaro, a close political ally of Trump. Those specific duties were later struck down by the US Supreme Court in February, creating uncertainty around the long-term framework of US-Brazil trade relations.
In a statement, top trade official Jamieson Greer noted that he initiated the Section 301 probe to address what he called longstanding and widespread concerns over Brazil’s trade policies and regulatory environment.
Despite recent diplomatic engagement with Brazilian President Luiz Inácio Lula da Silva and senior officials, Greer noted that significant differences remain between the two countries on how to resolve the issues identified in the investigation.
The proposed tariffs now enter a public consultation phase, with stakeholders invited to submit comments by July 1.
US-Brazil Trade Tensions Rise Over New Tariff Proposal
A public hearing is scheduled for July 6, as part of the formal review process. The US trade agency is required to take responsive action in the investigation by July 15, setting a tight timeline for final decisions.
Washington has previously used section 301 of the Trade Act to impose wide-ranging tariffs, most notably against China during Trump’s first term. The mechanism allows the US government to respond to what it determines as unfair foreign trade practices affecting American industries.
USTR also indicated that several other Section 301 investigations are currently ongoing and could lead to additional trade measures. These include probes into industrial overcapacity in China and other trading partners, as well as investigations into forced labour enforcement across dozens of countries. A separate inquiry into Vietnam’s intellectual property practices was also launched recently, signalling an increasingly assertive US trade enforcement strategy.
Under the proposed Brazil tariff framework, goods already subject to national security-related tariffs under Section 232 of the Trade Expansion Act will not face additional duties. These include existing 50% tariffs on steel, aluminium and copper, along with 25% tariffs on finished metal products and automotive imports.
Furthermore, USTR outlined a broader list of exemptions, which includes several agricultural and industrial goods such as fruits, nuts, crude oil, petroleum products, pharmaceutical compounds, organic chemicals and fertilisers.
Trade analysts suggest the move could heighten tensions between Washington and Brasília at a time when both countries are already navigating complex political and economic relations.
Brazil remains a key supplier of agricultural and industrial commodities to the US, while American companies maintain significant investments in Brazil’s energy, technology and manufacturing sectors.
While the Trump-led administration argues the tariffs are necessary to correct structural imbalances and protect domestic industries, critics warn that such measures risk escalating into broader trade disputes, potentially affecting global supply chains and commodity markets.
The focus of the consultation process in the coming weeks will be on whether the US will move forward with one of its biggest tariff measures against Brazil in recent years, or whether talks between the two sides can ease tensions.
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