The United States has imposed a 25 per cent tariff on imports from Brazil after concluding that the South American nation engaged in unfair trade practices, escalating trade tensions between the two countries.
The tariffs, which were first proposed last month, will take effect on July 22, following a year-long investigation by the Office of the U.S. Trade Representative (USTR).
The order exempts products not produced in the United States or those considered critical to supply chains, including coffee, beef, oranges and orange juice, selected oil and gas products, as well as aerospace parts and components.
The USTR on Thursday, said its investigation found that Brazil engaged in several unfair trade practices, including weak anti-corruption enforcement and the imposition of discriminatory tariffs, despite the United States maintaining a trade surplus with Brazil for several years.
U.S. Trade Representative Jamieson Greer said the measures were necessary to protect American workers and businesses.
“Extensive negotiations with Brazil over the past year have not resolved these issues, but we remain open to continuing negotiations with Brazil to bring about long-needed changes to the problems identified in this investigation,” Greer said.
The decision follows months of strained trade talks. After Washington proposed the tariffs in June, Brazilian President Luiz Inácio Lula da Silva accused political opponents of influencing the move, pointing to Senator Flávio Bolsonaro, son of former President Jair Bolsonaro, who had recently visited Washington. Bolsonaro remains a close ally of U.S. President Donald Trump.
U.S. Secretary of State Marco Rubio defended the tariffs, accusing the Lula administration of failing to negotiate in good faith.
“Let there be no confusion about why: President Lula and his government have not negotiated with the U.S. in good faith. His economic policies are bad for Americans and bad for Brazilians. For the past year, Lula has put his own ego ahead of making a deal for the welfare of the Brazilian people, and these tariffs are the price for that,” Rubio wrote on X.
The tariffs were imposed under Section 301 of the Trade Act of 1974, which allows the U.S. to investigate and respond to unfair foreign trade practices.
The latest action comes months after the U.S. Supreme Court ruled that President Trump’s earlier attempt to impose sweeping tariffs under the International Emergency Economic Powers Act (IEEPA) exceeded his legal authority. Those proposed 50 per cent tariffs on Brazil had been justified by the administration as a response to the prosecution of former President Jair Bolsonaro over his alleged role in efforts to overturn the 2022 election results.
Relations between Washington and Brasília had appeared to improve after Lula visited the White House in May, but the new tariffs signal renewed friction between the two governments.