The United States announced it will impose 25% tariffs on various Brazilian imports effective July 22. Senior administration officials stated the decision follows a year-long investigation into Brazil's trade practices under Section 301 of the Trade Act of 1974. The probe concluded that Brazil engaged in unreasonable practices, including insufficient anti-corruption enforcement, unfair domestic tariffs, and environmental concerns related to illegal logging.
The order includes exemptions for products not produced in the U.S. or those deemed critical to supply chains. Specifically, coffee, beef, oranges, orange juice, aerospace components, and certain oil and gas products are exempt from the new duties. U.S. Trade Representative Jamieson Greer stated the measures were necessary because Brazil's policies prevented U.S. producers from accessing the Brazilian market fairly.
Brazilian President Luiz Inácio Lula da Silva criticized the move, suggesting the decision was influenced by domestic political considerations involving his rivals. Administration officials denied these claims, stating that the U.S. had provided Brazil time to address trade grievances but found subsequent progress insufficient. This action follows a February Supreme Court ruling that struck down previous tariffs on Brazil imposed under a different legal authority.