See note from the Brazilian government that refutes the US proposal to apply new tariffs against Brazil

The Brazilian government issued a note this Tuesday (2) in which it rejects the United States' proposal for a new tariff against Brazil.
The text expresses indignation at the conclusion of a preliminary investigation that suggests unfair commercial practices on the part of the country.
The note also cites articulations by the Bolsonaro family against national interests and regrets that the work of coordination between the Executive and the North American government has been "sabotaged" - a motto used by President Luiz Inácio Lula da Silva (PT) at an event this Tuesday, in Goiás.
In the statement, anticipated by Valdo Cruz's blog, the Brazilian government classifies the measures as unjustifiable; presents data on the American surplus in goods and services; and also mentions that Brazil "reserves the right" to adopt reciprocal measures (read the full text below).
PIX is an achievement of the Brazilian people, says Alckmin when commenting on the new US tariff
At the same time, the government team held a press conference to detail the Brazilian government's position.
At the time, Vice President Geraldo Alckmin classified as "unfair" the proposal by the United States Trade Office (USTR) to tax exports from Brazil.
Read the Brazilian government's note in full
"The Brazilian Government expresses indignation with the preliminary conclusion announced yesterday (1/6) by the USTR regarding the Section 301 investigation against alleged unfair commercial practices in Brazil.
This investigation began on July 15, 2025 at the provocation of the Bolsonaro family and is associated with the attempt to interfere in our country's internal affairs, as done in the recent trip of Senator Flávio Bolsonaro to Washington. These attacks have had the help of false patriots who use public positions and functions to conspire against national interests.
It is regrettable that all the work of dialogue and articulation that the Brazilian Government has done, including the personal involvement of Presidents Lula and Trump, is sabotaged by purely electoral and family interests.
There was and is no justification for these unilateral measures against our country or against Brazilian assets such as the PIX, explicitly mentioned in the preliminary recommendations.

According to statistics from the "Bureau of Economic Analysis", the USA accumulated US$ 424.5 billion in surplus of goods and services with Brazil in the last 15 years (2011-2025). Last year alone, the US trade surplus in goods with Brazil totaled US$14.46 billion. Considering goods and services, the figure rises to US$40.52 billion.
In 2025, 76% of imports originating in the United States entered Brazil without paying import taxes.

Eight of the top ten products imported by Brazil from the United States had zero effective tariffs, including oil and oil products, aircraft, natural gas and coal.

The average rate actually charged on North American products in Brazil was just 3.1%.
The main effect of the unilateral, politically motivated tariffs applied to our country has been to impose damage to the national economy and the generation of jobs and income, in addition to diminishing the role of the USA as our trading partner.

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In the first quarter of 2026, the US participation in Brazilian exports reached the lowest value in the historical series at 9.4%.
As agreed by Presidents Lula and Trump at the meeting in Washington on May 7th, tariff negotiations are underway between the two countries in search of solutions that result in the closure of the Section 301 investigation, scheduled for July 15th, without imposing measures against Brazil.

The Brazilian Government will also continue the dialogue with the private sector with this objective.
Brazil reserves the right to resort to the instruments provided for in the Reciprocity Law, unanimously approved by the National Congress, to address situations of injustice against the Brazilian State, without support in the rules of international trade.
The Government reaffirms the expectation that the recommendations will not be converted into effective tariffs, but reiterates that it will adopt any and all measures capable of reducing the damage that may be caused to the economy, jobs and income of Brazilians.
It is necessary to be aware of traitors to the country and work in defense of our sovereignty and the interests of the Brazilian people.
ANNEX
Summary of the arguments presented by Brazil regarding the items investigated in the context of Section 301:
In successive meetings held with USTR technicians, Brazilian authorities provided abundant documentation that proves that Brazilian trade policy does not discriminate, does not harm US trade or violate international standards in force.
1. Digital Commerce and Electronic Payment Services: Brazilian law grants equal treatment to national and foreign companies. In Brazil, there are no restrictions against large technology companies from the United States. The country is a large market for American "big techs". PIX is a free, public infrastructure for instant payments, operated by the Central Bank of Brazil and widely accepted by the population. Its rules apply uniformly and neutrally, and North American companies actively participate in this ecosystem. Brazil is the second largest market worldwide for the two main US credit card networks.
2. Preferential tariffs: The trade agreements signed by MERCOSUR with third countries (Mexico and India) do not restrict the access of North American products to the Brazilian market. Inputs and components of North American origin incorporated into Brazilian products benefit from MERCOSUR Agreements with other markets.
3. Application of anti-corruption laws: Brazil is part of the main international instruments to combat corruption and has a consistent legal and institutional framework for their application, regularly evaluated by the relevant multilateral mechanisms. Since 2017, more than thirty leniency agreements have been signed. In April 2026, at the initiative of the Brazilian Government, a proposal to combat organized crime and combat corruption was presented to the State Department.
4. Protection of intellectual property rights: The United States is the main beneficiary of the Brazilian intellectual property system. They account for around 30% of patent applications and lead licensing and asset assignment contracts. Royalty payments to the North American market totaled US$1.38 billion in 2024, double the amount recorded in 2020.
5. Ethanol: The National Biofuels Program is open to foreign producers under non-discriminatory conditions, and the National Petroleum, Natural Gas and Biofuels Agency has developed specific technical guidelines for the participation of North American producers in the Program.

The US applies a 12.5% ​​tariff on Brazilian ethanol, a relatively small difference to the 18% applied by Brazil. On the other hand, Brazilian sugar has a tiny quota of around 150 thousand tons and, above the quota, is subject to a tariff of US$340 per ton, equivalent to a tax rate of 80%.
6. Deforestation: Since 2023, the Government has established and is meeting the goal of zero deforestation by 2030. Deforestation in the Legal Amazon has already been reduced by around fifty percent compared to 2022. The burned area in the country as a whole fell by around forty percent in 2025 compared to the average for the period 2017-2024. Furthermore, data released last week by MapBiomas indicates that, in 2025, deforestation in Brazil, in its six biomes, reached its lowest level in 7 years.
Government of Brazil"
US tariffs may take immediate effect despite negotiation deadline
Anadolu via Getty Images

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