The United States will impose a 25% tariff on most imports from Brazil beginning July 22, following a year-long investigation that concluded the South American country engaged in what Washington described as unfair trade practices.
The tariffs, imposed under Section 301 of the U.S. Trade Act of 1974, target several Brazilian policies, including directives requiring U.S. technology companies such as X, Meta and Google to remove certain political content, preferential tariff treatment for other countries, intellectual property concerns and barriers affecting U.S. ethanol exports.
The new duties will apply to most Brazilian goods, although products including beef, orange juice, aircraft and aircraft parts, and energy products have been exempted.
Brazilian President Luiz Inácio Lula da Silva rejected the U.S. decision, calling it unjustified and announcing plans to challenge the tariffs through the World Trade Organization (WTO) while preparing retaliatory measures.
Lula argued that the United States has maintained a cumulative US$424.5 billion trade surplus with Brazil in goods and services over the past 15 years, adding there was no basis for unilateral trade action. According to U.S. government data, the U.S. goods trade surplus with Brazil reached US$14.4 billion last year.
The latest measures follow a February ruling by the U.S. Supreme Court that struck down President Donald Trump’s earlier 50% tariffs on Brazilian imports, leaving only a 10% global tariff in place. The Trump administration has since relied on Section 301 investigations to pursue new trade penalties.
The Office of the U.S. Trade Representative said the tariffs are intended to create a level playing field for American workers and businesses.
The dispute could deepen further, with a separate U.S. investigation into Brazil’s enforcement of forced labour laws expected to conclude next week. That probe could result in an additional 12.5% tariff on Brazilian imports.
The trade conflict has also become an issue in Brazil’s upcoming October presidential election. Lula has accused Senator Flávio Bolsonaro of contributing to the dispute following meetings in Washington, an allegation the senator has denied, saying he instead sought to persuade U.S. officials to postpone the tariffs until after the election.
