RIO DE JANEIRO — Brazil’s government is pushing back hard against a newly announced U.S. tariff, calling it unjustifiable and promising to hit American products with retaliatory measures of its own.
On Wednesday, the United States announced it would place a 25% tariff on a range of Brazilian imports, pointing to what it described as unfair trade practices by the world’s tenth-largest economy. The tariffs were first floated last month and are scheduled to kick in on July 22.
Not everything will be affected — the order carves out items that aren’t made in the U.S. or that could cause supply chain disruptions if taxed, such as coffee, beef, oranges, orange juice, and aircraft parts.
The office of Brazilian President Luiz Inácio Lula da Silva fired back late Wednesday, disputing the U.S. characterization of Brazil as an unfair trading partner. According to the statement, 76% of U.S. goods entering Brazil in 2025 did so without any tariff, and the average duty applied to American products was just 3.1%.
Brazil’s government said it has already begun the process of imposing matching tariffs and other trade countermeasures. “Brazil will immediately begin the procedures necessary to invoke the mechanisms provided for under the reciprocity law … and will also pursue the matter through the World Trade Organization’s dispute settlement mechanism,” the statement read.
The move is a notable one, given that Brazil is not the typical target of U.S. trade complaints. While the U.S. runs large trade deficits with many countries, it has consistently run trade surpluses with Brazil. Last year, American exports to Brazil outpaced imports by nearly $42 billion — a gap exceeded only by U.S. surpluses with the Netherlands and the United Kingdom.
Brazil’s National Confederation of Industry weighed in Thursday, warning that the new tariff puts pressure on exports and creates uncertainty for businesses in both countries.
This is not the first time the two nations have clashed over trade. Last July, the Trump administration imposed a 50% tariff on Brazilian imports, with the president citing what he called a “witch hunt” against former Brazilian President Jair Bolsonaro, who was then on trial for allegedly attempting a coup after losing the 2022 election to Lula. Bolsonaro was later convicted. Some of those earlier tariffs were eventually rolled back.
At that time, President Trump also accused Brazil of unfair trade practices and directed U.S. Trade Representative Jamieson Greer to launch an investigation under Section 301 of the Trade Act of 1974. That inquiry resulted in charges against Brazil in June, including allegations of lax anti-corruption enforcement and unfair tariff structures.
President Lula referenced that history on Wednesday, placing blame for the latest round of tariffs on the Bolsonaro family. His office also stated: “Brazil does not recognize the legitimacy of investigations that are not grounded in the multilateral rules governing international trade.”
U.S. Secretary of State Marco Rubio announced the tariff in a post on X, claiming the decision came because Lula put “his own ego ahead of making a deal” and failed to negotiate in good faith with the United States. Brazil’s government rejected that assertion, saying it had “never left the negotiating table.”
The timing adds political complexity, as Brazil heads toward a presidential election in October. President Lula is expected to face Sen. Flávio Bolsonaro, a son of former President Jair Bolsonaro, in that race.
Flávio Bolsonaro shared Rubio’s post on social media, adding his own commentary: “Lula is no longer fit to be the president of Brazil. We are on a plane without a pilot.” He also referred to Lula as “the Brazilian Biden,” saying he “is grumpy, reckless, and has become a danger to our nation.”
Both leading candidates for October’s election have already been sparring over how best to respond to the widely unpopular U.S. tariffs, signaling that trade policy is shaping up to be a major issue on the campaign trail.
