US concludes investigation and proposes 25% tariff on Brazilian goods to punish 'unreasonable' practices

At the White House, Lula and Donald Trump discuss rare earths, organized crime and trade
Jornal Nacional/ Reproduction
The Office of the United States Trade Representative (USTR) determined, this Monday (1), that a series of acts, policies and practices of the Brazilian government are "unreasonable" and "encumber or restrict" North American trade. With the conclusion of the investigation, supported by Section 301 of the Commerce Law of 1974, the agency proposed the application of corrective measures and opened the case for public consultation. The USTR's proposal is to apply tariffs of 25% on all goods from Brazil, with some exemptions.
The investigation had been initiated on July 15, 2025 by order of President Donald Trump. According to the US Ambassador and Trade Representative, Jamieson Greer, the American government maintains an intense dialogue with the government of President Luiz Inácio Lula da Silva, but there are still substantial differences.
The legal deadline for taking corrective measures expires on July 15, 2026.
"Over the last year, President Trump and I have had several constructive meetings with President Luiz Inácio Lula da Silva and his cabinet, which have intensified in recent weeks. However, we continue to have substantial disagreements in resolving the issues identified in this investigation," said Greer.
Products that would be exempt
According to the released document, some items would be spared from this tariff, including informative materials, donations and a specific list of products - such as certain meats, fruits, minerals, coffee, tea, spices, cereals, seeds, oilseed fruits, industrial and medicinal plants, straw and fodder -. Brazilian aircraft and aircraft parts, rare earths, organic chemicals, pharmaceuticals and fertilizers would also be exempt.
The points criticized by the US
The USTR's final report points out irregularities and trade barriers distributed across six main axes:
Digital Commerce and Payment Services: The USTR cites that Brazilian courts issued secret orders for American social media companies to remove political content and suspend profiles of US residents - in some cases, globally -, prohibiting the disclosure of orders. The body also criticizes the imposition of severe fines, restrictions on assets and bank accounts and, in at least one case, the complete closure of a website. Furthermore, the text points to Brazil's favoring local competitors in electronic payment services.
Unfair Preferential Tariffs: The American government contests the partial scope trade agreements maintained by Brazil with Mexico and India. According to the USTR, Brazil grants lower tariffs to hundreds of products from these countries in sectors in which both are advanced and globally competitive producers.
Illegal Deforestation: The document states that, although Brazil has a legal framework to combat illegal deforestation, the country has historically failed to apply it effectively, allowing the problem to persist.
Ethanol Market Access: The American body argues that Brazil abruptly stopped treatment in 2017 balanced tariff it applied to ethanol and, since then, has not offered reciprocal treatment to fuel exports from the US.
Intellectual Property Protection: The US points to a lack of sufficient enforcement of criminal and customs laws against counterfeiting products, excessive slowness in examining patents (especially biopharmaceuticals) and a lack of continuous anti-piracy measures.
The USA criticizes the National Institute of Industrial Property (INPI)'s delay in analyzing patents (especially biopharmaceuticals, which take up to 109 months).
Fighting Corruption: The American representation concluded that Brazil does not adopt sufficient measures to combat bribery and corruption.


The document specifically cites the annulment of Operation Lava Jato processes by the STF in 2023, the "without transparency" renegotiation of leniency agreements and Brazil's fall in Transparency International's Corruption Perception Index.
Next steps and deadlines
Before the definitive application of any sanction or corrective measure, the US government has established a schedule of public hearings and consultations to collect testimonies from interested parties:
By June 22, 2026: Deadline for submitting requests to appear at the public hearing, accompanied by a summary of the testimony.
Until July 1, 2026: Deadline for submitting written comments on the measures proposed by the USTR.
July 6, 2026: Official public hearing held by the USTR to discuss the proposed actions.
July 15, 2026: Legal deadline for the definition and application of corrective measures against Brazil.
During the initial phase of the investigation, the USTR had already collected statements from more than 30 witnesses and received more than 295 comments and replies before issuing the current opinion.

Source: G1

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