US Trade Office proposes taxing Brazilian imports by 25%

The USTR (United States Trade Representative) proposed, in a document released late this Monday night (1), the imposition of 25% tariffs on all imports from Brazil, except for goods that are classified as "subject to national security tariffs".

The agency says it has determined that the Brazilian government's policies on digital commerce, certain tariffs and illegal deforestation are subject to legal action under so-called Section 301 of the Act - a trade policy tool that allows Americans to investigate and retaliate against other nations against trade practices considered unfair. In this group, beef, coffee, certain fruits and nuts, spices, petroleum and metal ores would be exempt from punitive tariffs.

In a note, the USTR says that "certain acts, policies and practices of Brazil related to digital commerce and electronic payment services; unfair preferential tariffs; application of anti-corruption measures; protection of intellectual property; access to the ethanol market; and illegal deforestation are unreasonable and burden or restrict U.S. commerce and are therefore subject to legal action under Section 301(b) of the Trade Act."

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"I initiated this Section 301 investigation at the request of President Trump to address long-standing and widespread U.S. concerns regarding certain Brazilian trade policies and practices. Over the past year, President Trump and I have had several constructive meetings with President Luiz Inácio Lula da Silva and his office, which have intensified in recent weeks," said Ambassador Jamieson Greer.

"However, we continue to have substantial divergences in resolving the issues identified in this investigation. I look forward to continuing the dialogue with the Brazilian Government, before the legal deadline of July 15, 2026 for taking corrective measures."

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Source: CNN