WASHINGTON — Federal officials have unveiled plans to impose 25% import fees on goods coming from Brazil, accusing the South American nation of engaging in unfair trade practices that harm American business interests.
The proposal was announced Monday evening following a federal trade investigation that criticized Brazil for weak anti-corruption measures and imposing its own unfair import duties on American products.
U.S Trade Representative Jamieson Greer acknowledged having productive discussions with President Luiz Inácio Lula da Silva and other Brazilian leaders alongside President Donald Trump. However, Greer stated that “we continue to have substantial differences in resolving the issues identified in this investigation.”
Officials have set July 6 as the date for public input on the proposed import fees.
Trade attorney Ryan Majerus from King & Spalding pointed out that the administration’s proposal leaves out more than half of American imports from Brazil, excluding items like aircraft and essential minerals.
The current administration used Section 301 of the Trade Act of 1974 as the legal basis for examining Brazil’s trade policies.
Previously, the administration had imposed a 50% tariff on Brazilian goods last year, primarily in response to Brazil’s legal action against former president Jair Bolsonaro for attempting to challenge his 2022 election loss.
The U.S. Supreme Court determined in February that the administration exceeded its legal authority by using the International Emergency Economic Powers Act of 1977 to implement broad tariffs on trading partners, including the measure targeting Brazil.
Nevertheless, tariffs imposed under Section 301 have withstood court challenges, and officials are expected to rely on this legal framework for additional tariffs and to recover tax revenue lost due to the Supreme Court’s rejection of the previous tariff structure.
