Jamieson Greer announced that the United States will impose a 25% tariff on most Brazilian goods starting July 22.
Jamieson Greer, the U.S. Trade Representative, announced that the United States will impose a 25% tariff on most Brazilian goods beginning July 22. The administration announced the move following a yearlong investigation into "unfair" trade practices by Brazil, specifically targeting the country's domestic payment system, Pix. While the tariffs affect a wide range of products, the administration announced that major exports such as coffee, beef, and petroleum oils will be exempt. The move marks the first time Washington has used Section 301 authority to target a country's domestic payment infrastructure. The administration announced that Pix disadvantages American firms like Visa and Mastercard by requiring free access for individuals. While Brazilian President Luiz Inácio Lula da Silva called the tariffs "arbitrarily imposed," Secretary of State Marco Rubio noted that the tariffs are a result of Brazil's failure to negotiate in good faith. These measures follow a Supreme Court ruling that forced the administration to pivot from previous emergency powers to a new strategy of Section 301 investigations to ensure American competitiveness.