WASHINGTON — The United States is set to place 25% tariffs on a variety of goods imported from Brazil, with the new duties scheduled to go into effect on July 22. Federal officials say the move comes after determining that Brazil, the world’s 10th-largest economy, has engaged in a number of unfair trade practices.
The tariffs were first floated last month, and the final order carves out exceptions for products that either aren’t made in the U.S. or that could cause disruptions to supply chains if taxed. Items that won’t face the new tariffs include coffee, beef, oranges, orange juice, certain oil and gas products, and aerospace components.
The Office of the U.S. Trade Representative wrapped up a year-long investigation concluding that Brazil’s trade practices were problematic in several ways — including weak anti-corruption enforcement and its own unfair tariffs on American goods. Notably, the U.S. has actually maintained a goods trade surplus with Brazil for several years.
U.S. Trade Representative Jamieson Greer issued a statement saying the tariffs were needed to make sure American workers and businesses aren’t competing at a disadvantage.
“Extensive negotiations with Brazil over the past year have not resolved these issues, but we remain open to continuing negotiations with Brazil to bring about long-needed changes to the problems identified in this investigation,” Greer said.
Brazilian President Luiz Inácio Lula da Silva pushed back sharply when U.S. officials first signaled the tariffs were coming in early June. Rather than addressing the trade concerns directly, Lula pointed to political motivations and placed blame on his rival in Brazil’s upcoming October elections, Sen. Flávio Bolsonaro. Bolsonaro had recently traveled to Washington and is the son of former President Jair Bolsonaro, who has been an ally of President Donald Trump.
Secretary of State Marco Rubio weighed in on the announcement via a post on X, writing: “Let there be no confusion about why: President Lula and his government have not negotiated with the US in good faith. His economic policies are bad for Americans and bad for Brazilians. For the past year, Lula has put his own ego ahead of making a deal for the welfare of the Brazilian people, and these tariffs are the price for that.”
The tariffs are being applied under Section 301 of the Trade Act of 1974, the legal authority that allowed the U.S. to conduct the investigation into Brazil’s trade conduct.
The legal route matters because the U.S. Supreme Court ruled in February against many of Trump’s tariffs that had been imposed under a separate law — the International Emergency Economic Powers Act of 1977. The court determined that Trump exceeded his authority under that law when he used it to impose broad tariffs on trading partners, Brazil included.
Under that earlier law, Trump had imposed a 50% tariff on Brazil in response to Brazil’s prosecution of Jair Bolsonaro, who faced charges related to allegedly attempting to overturn his 2022 election defeat. Relations between Trump and President Lula appeared to warm somewhat in May, when Lula visited the White House.
