New US tariffs reduce competitiveness of products, but there is a 'window' to negotiate, says Amcham Brasil

USA proposes 25% tariff on products from Brazil, after commercial investigation
The American Chamber of Commerce for Brazil (Amcham Brasil) assessed this Tuesday (2) that the United States investigation concluded this week, and which accuses the Brazilian government of committing irregular practices and proposes a surcharge on Brazilian products, could increase costs, reduce competitiveness and create obstacles to trade and bilateral investments - if confirmed.
The measure, announced on Monday night (1st), represents the most advanced phase of a process that could lead to the imposition of direct trade sanctions and reinforces the use of one of the main pressure instruments of United States trade policy.
The investigation was initiated on July 15, 2025 by the United States Trade Office (USTR), following a determination by President Donald Trump. The process is supported by Section 301 of the US Trade Act of 1974.
Despite the scenario, Amcham highlights that the report recognizes the advances in dialogue between the governments of the two countries, intensified in recent weeks after the meeting between presidents Luiz Inácio Lula da Silva (PT) and Donald Trump, on May 7.
Amcham also points out that the text signals the Trump administration's interest in continuing negotiations until the final decision on the case, scheduled for July 15.
"This is a concrete window for the search for solutions that can avoid or review the proposed tariff measures", adds the entity.
Abrão Neto, president of Amcham Brasil, highlights that the report is not final and reinforces that there is still time to avoid the adoption of new tariffs.
According to him, the business sector expects the two governments to "intensify their efforts in the coming weeks and reach a solution that addresses the issues under discussion, preserving the necessary conditions for the evolution of trade and investment in both countries". made with forced labor.
According to the entity, this investigation could result in the application of additional tariffs to around 60 countries, including Brazil.
In Amcham's assessment, this scenario increases the importance of a negotiated solution to the process currently underway, preventing Brazilian products from facing more unfavorable tariff conditions than those of competitors in other markets.
The conclusion of the investigation occurs within the deadline established for the negotiations of the working group created by the US and Brazilian governments to deal with commercial themes and avoid applying new tariffs.

Source: G1