The United States will impose a 25% tariff on most Brazilian imports starting July 22 following a yearlong investigation into unfair trade practices.
The administration announced that the United States will apply a 25% tariff on most Brazilian imports beginning July 22. United States Trade Representative Jamieson Greer stated that the measure follows a yearlong investigation into unfair trade practices, including illegal deforestation and digital trade issues. The tariffs are the first major actions under a new strategy launched after the Supreme Court struck down the previous tariff system. While the tariffs will affect products like sugar, steel, and apparel, the administration announced exemptions for major exports such as coffee, beef, and aircraft parts. Secretary of State Marco Rubio criticized the move, noting that President Luiz Inácio Lula da Silva failed to negotiate in good faith. In response, Luiz Inácio Lula da Silva called the tariffs arbitrary and stated that Brazil would seek a resolution through the World Trade Organization. A separate investigation into forced labor may add another 12.5% to the total tariff burden, bringing the final cost to 37.5%.