The United States will impose 25% tariffs on imports from Brazil starting July 22, following a yearlong investigation by the Office of the U.S. Trade Representative that concluded the world's 10th-largest economy engaged in a range of unfair trade practices.
The order, first proposed last month, exempts certain goods not produced in the U.S. or that officials worry would disrupt supply chains. Exempted products include coffee, beef, oranges and orange juice, some oil and gas energy products, and aerospace parts and components. The USTR's investigation cited lax anti-corruption enforcement and unfair tariffs of its own, among other practices deemed unreasonable and unfair.
U.S. Trade Representative Jamieson Greer said in a statement that the action was necessary to ensure American workers and companies compete on a level playing field. "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," he said.
The move has drawn sharp criticism from Brazilian President Luiz Inácio Lula da Silva, who called the tariffs unjustifiable and vowed to impose reciprocal measures. Lula pointed to political considerations, blaming his rival in the country's October elections, Senator Flávio Bolsonaro, who had recently visited Washington and is the son of former President Jair Bolsonaro, an ally of President Donald Trump.
Secretary of State Marco Rubio defended the decision, posting on X: "Let there be no confusion about why: President Lula and his government have not negotiated with the US 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."
The tariffs are being imposed under Section 301 of the Trade Act of 1974, which allows the U.S. to investigate and respond to foreign trade practices. The move comes after the U.S. Supreme Court in February ruled against many of Trump's tariffs imposed under a different law, the International Emergency Economic Powers Act of 1977, finding he had overstepped his authority under that act. Trump had previously imposed a 50% tariff on Brazil to protest the prosecution of Jair Bolsonaro for trying to overturn his 2022 election loss.
Despite the tensions, Trump's relationship with Lula appeared to improve in May, when the Brazilian president visited the White House. The new tariffs now threaten to undo that progress and escalate a trade dispute that could have broader implications for U.S.-Latin America relations.
