The Office of the United States Trade Representative (USTR) announced on Wednesday that it will impose 25% duties on a range of imports from Brazil. The tariffs are scheduled to take effect on July 22, following a year-long investigation under Section 301 of the Trade Act of 1974. The U.S. government cited unresolved concerns regarding unfair trade practices related to digital trade, illegal deforestation, and Brazil's Pix payment system.
The new duties will apply to thousands of products, including sugar, apparel, and agricultural and electrical machinery. However, the USTR also released an expanded list of exemptions. Items such as beef, coffee, aircraft parts, energy products, and rare earths will not be subject to the new 25% levy. The American Chamber of Commerce for Brazil noted that these exemptions cover approximately $11 billion in annual trade.
U.S. Trade Representative Jamieson Greer stated that negotiations over the past year failed to resolve identified issues, though he noted the U.S. remains open to further talks. Brazilian President Luiz Inácio Lula da Silva and Foreign Affairs Minister Mauro Vieira criticized the decision, describing the move as politically motivated rather than technical. Brazil indicated it plans to challenge the tariffs through the World Trade Organization (WTO) dispute settlement mechanism.
This action against Brazil is part of a broader trade strategy by the Trump administration following a Supreme Court ruling that struck down previous global levies. Related Section 301 investigations are currently underway involving other major trading partners, including China, India, and the European Union. A separate U.S. probe into forced labor supply chains, due to conclude later this month, could potentially add further duties to Brazilian goods.