Trump tariff: US companies claim that Brazil is irreplaceable and try to stop the 25% tax

US tariff against Brazil is marked by back and forth
Extracted from Brazilian mines, natural stones such as amethysts, agates and quartz travel thousands of kilometers to reach the United States, where they are transformed into decorative items, gifts and souvenirs sold by wholesalers and retailers.
This trade, however, could be affected by the American government's proposal to once again impose an additional tariff on Brazilian products.
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For this reason, even American companies that depend on these imports began to pressure Washington to remove Brazilian products from the surcharge list. They argue that there are no suppliers in other countries capable of replacing Brazil in terms of quality, production scale and price.
Among these companies is GeoCentral, a wholesaler based in Mason, in the state of Ohio, specializing in stones, crystals and fossils.
The company, controlled since 2008 by the family holding CM Paula, formally asked the Office of the United States Trade Representative (USTR) for Brazilian semi-precious stones to be included in the list of products exempt from the measure.
According to the company, more than 25% of its entire portfolio is imported from Brazil from states such as Minas Gerais and Rio Grande so Sul, including the majority of precious and semi-precious stones sold in different formats, from loose crystals to retail-ready products.
GeoCentral is not alone. At least 11 other companies and sector entities sent statements to the USTR contesting the proposed surcharge on Brazilian goods.
Of these, at least nine are American companies. In common, they claim that the measure will increase costs, harm their operations and reduce the competitiveness of the US industry.
'There are no equivalent alternatives'
Minerals sold by GeoCentral: company requested the inclusion of natural stones in the US government's exemption list
Disclosure
In an interview with g1, the CEO of CM Paula, George White, stated that the company buys Brazilian products out of necessity, and not just out of preference.
"We don't buy from Brazil simply because we want to. We buy because the country offers the best combination of quality and cost available in the world."
In 2025, Brazilian exports in the category of pearls and precious or semi-precious stones, raw or worked, totaled around US$45.6 million to the USA. When jewelry and other items made of precious or semi-precious materials are included, the value exceeds US$71.8 million.
According to White, Brazil has a mining infrastructure that is difficult to replicate by other countries, with the capacity to extract, cut, polish and prepare stones for commercialization on a large scale. "There are simply no equivalent alternatives elsewhere", he stated.
In her statement to the USTR, CM Paula informed that around 120 products sold by GeoCentral would be affected by the tariff and argued that they "are not available from alternative sources with reasonable prices, similar quality or sufficient quantity outside of Brazil".
Agate stone, imported from Brazil and sold by GeoCentral in the USA
Disclosure
History of tariffs has already affected the company
White states that the company has already suffered significant impacts from the increase in tariffs previously imposed on Brazilian imports. According to the executive, the surcharges forced the company to reduce expenses, lay off employees, reduce investments in marketing and raise wholesale prices.
Part of these amounts began to be returned after decisions by the American Courts that questioned the legality of tariffs imposed by the US government based on the International Emergency Economic Powers Act (IEEPA). As a result, several charges were suspended or began to be questioned in court.
In Brazil, surcharges imposed by the USA reached 50% on part of the products exported in 2025.
On November 20, 2025, however, President Donald Trump signed a decree that removed the 40% additional tariff applied to dozens of Brazilian agricultural and livestock products, even before the final decision by the American Court on the legality of the charges.
Later, after the US Supreme Court considered part of these surcharges illegal, the American government began to use other legal instruments to support some charges, including a global tariff of 10% on imports.
This measure was also challenged in court, but a federal appeals court decided to keep it temporarily in force while it analyzes the government's appeal.
According to White, the company has already recovered around 10% of the amounts owed and expects to receive the rest by the end of this year or the beginning of next. In total, the company has already submitted 117 refund requests related to imports from Brazil and China.
Even if the additional 25% tariff is implemented, GeoCentral says it will continue to buy Brazilian products.
"We will continue to import from Brazil. The only difference is that we will have to bear higher costs because of the tariffs," said White. According to the executive, the company has not yet found suppliers in other countries capable of replacing Brazilian stones.
American companies turn to the USTR
The mobilization of American companies comes after the USTR concluded an investigation that accuses the Brazilian government of adopting practices that "encumber or restrict" trade with the USA, citing topics such as PIX, the fight against illegal deforestation, piracy and the application of anti-corruption laws.
Based on the report, the agency proposed an additional tariff on 25% on a wide range of Brazilian products and opened a public consultation to receive comments from companies, associations and other interested parties.
The process will conclude with a hearing scheduled for July 6, when representatives of the affected sectors will be able to present the impacts of the measure to the American government.
The number of companies protesting is not greater because the proposal provides for a long list of exceptions. Information materials, donations and a specific list of products must be excluded from the surcharge, which includes items such as coffee, tea, certain meats, fruits, minerals, cereals, seeds, oilseed fruits, industrial and medicinal plants, as well as straw and fodder. (see the complete list here)
In the statements sent to the USTR, companies in the flooring, construction, mining, education and housing sectors maintain that many Brazilian products do not have equivalent substitutes in the American market and warn that the tariff would increase costs for companies and consumers in the USA, without strengthening domestic production.
G1 located some of them in the requests to participate in the public hearings of the investigation.
The Fantastic Floor: a company from the state of Washington and specialized in wooden floors asked the exclusion of Brazilian species such as Jatobá and Cumaru from the tariff. According to the company, these woods are native to South America and are not commercially available in the USA.
Artivo Surfaces: American importer and distributor of wooden coverings and floors. In a statement to the USTR, he stated that Brazilian wood needs to be processed at its origin to preserve its quality and that the surcharge would not stimulate domestic production. "Increasing the tariff will not benefit US manufacturers or consumers, because the raw materials are naturally unavailable and the quality of the product cannot be replicated," he said.
Strong Flooring Solutions: a company in the flooring sector that argued that there are no American species capable of reproducing the appearance of Brazilian wood. For the company, consumers interested in this type of product would not migrate to national alternatives simply because "there is no option available".
Wood Timber Import: importer of wooden products that highlighted the importance of frames and construction components manufactured in Brazil for the American real estate market. According to the company, domestic production cannot meet demand in sufficient volume and quality, and new tariffs would only increase project costs.
JKG Inc. (Jessie Kan Granite): American company distributing granite, marble and quartz slabs, stated that Brazilian materials have unique geological characteristics. In his statement, he warned that the measure would only make works and final products more expensive: "Adding tariffs on natural stones from Brazil will only serve to increase construction costs and increase costs for end consumers."
Legacy Roots Housing Initiative (LRHI): organization focused on the development of modular housing and housing infrastructure projects in the USA. The entity stated that the tariff on these components would create barriers for small developers and delay housing projects.
Lauria Dental Model: American company that sells dental models used by universities and professional training courses. The company requested the exclusion of these products from the measure, arguing that they are intended exclusively for teaching, do not compete with medical devices manufactured in the USA and that the surcharge would only increase the costs of education.
Sector entities also entered the debate. The American Seed Trade Association (ASTA), which represents the US seed industry, requested participation in the USTR public hearing and defended that seeds for planting be excluded from the proposed tariff on Brazilian products.
According to the association, the implementation of the new tax would harm the competitiveness of the American sector and affect global supply chains essential for agricultural innovation.
Brazil is betting on negotiations before the final decision
After the deadline for sending written statements, which ends on July 1st, and the public hearing scheduled for July 6th, the US government must analyze the contributions received before making the final decision.
The expectation is that the process will be completed by July 15th, the scheduled date for the eventual implementation of the new tariffs.
According to Itamaraty, Brazil has acted on two fronts to try to reverse the proposal: the technical challenge to the investigation conducted by the USTR and the diplomatic negotiation with Washington.
The Brazilian government claims to have already sent formal statements to the American body and is considering presenting a new contribution during the consultation period.
In parallel, the topic may gain space on the international political agenda. President Luiz Inácio Lula da Silva participates in the G7 summit in France, and the Brazilian government is working on the possibility of a meeting with President Donald Trump, although there is no bilateral meeting officially scheduled.
Behind the scenes, the assessment is that the 25% surcharge proposal can still be negotiated before the conclusion of the process led by the USTR.
American Chamber of Commerce intensifies coordination
To g1, Amcham Brasil, an entity that represents companies and commercial relations between Brazil and the USA, stated that it is closely following the investigation conducted by the American government and defends a negotiated way out of the impasse.
The entity reported that it has been holding conversations with Brazilian and American authorities on the topic. According to Amcham, a meeting was held on June 15, in São Paulo, with the Minister of Development, Industry, Commerce and Services (MDIC) and representatives of around 15 companies.
At the meeting, the possible impacts of imposing additional tariffs on Brazilian products were discussed.
Amcham also said that it participated in the public consultation and hearing promoted by the US government and is preparing a new statement to the USTR.
The document should highlight the effects of surcharges on supply chains, production and consumption in the American market, in addition to Brazil's role as a strategic supplier and the risk that these products will be replaced by competitors from other regions, especially Asia.
"Brazil and the United States have a highly complementary and strategic economic relationship", said the entity, in a note. Therefore, he added, "it continues to work so that any divergences are dealt with through dialogue and cooperation, preserving trade, investments and the competitiveness of companies in both countries."

Source: G1