US imposes 25% tariff on Brazilian imports, Brazil vows retaliation
The United States announced a 25% additional tariff on a wide range of Brazilian products, to take effect on July 22. The measure follows a year‑long Section 301 investigation by the USTR that accused Brazil of unfair trade practices, including digital‑trade barriers, the Pix payment system, alleged illegal deforestation and other issues. USTR chief Jamieson Greer said the tariffs aim to protect U.S. workers and producers and that negotiations remain open.
Brazil’s government called the action “unjust” and a “marco lastimável,” rejecting the legitimacy of the USTR probe. President Luiz Inácio Lula announced that Brazil will activate its Reciprocity Law and bring the case before the World Trade Organization. The administration also highlighted a $424.5 billion U.S. trade surplus with Brazil over the past 15 years.
The USTR listed several exemptions, including beef, coffee, certain aircraft parts, and other goods deemed essential or unavailable in the United States. Brazilian industry groups warned of a potential $2.6 billion hit to exports and urged the government to protect affected sectors. U.S. officials, including Secretary of State Marco Rubio, criticized Brazil’s negotiating stance, while Brazil pledged to seek new markets through Mercosur agreements.