Brazil readies response as U.S. tariff decision approaches

The United States Office of the United States Trade Representative (USTR) is set to announce, by July 15, whether it will impose additional tariffs on Brazilian exports – a 25 % duty plus a further 12.5 % levy for alleged forced‑labor violations, potentially reaching 37.5 % on certain products. The measures would affect about 4,200 Brazilian items worth roughly US$15 billion, including iron‑ore, wood products, ethanol and other industrial goods.

Brazil’s government has repeatedly called the prospective tariffs “unfair”. High‑level talks continued on July 14 with USTR head Jamieson Greer, involving the Ministry of Development, Industry, Trade and Services (MDIC), the Foreign Ministry and the President’s office. Finance Minister Dario Durigan said a new provisional measure (MP) could be drafted – modeled on the “Brazil Soberano” programme – to support firms if the duties are confirmed, while also considering re‑activating the Economic Reciprocity Law.

Brazilian officials, including Foreign Minister Mauro Vieira and Development Minister Márcio Elias Rosa, warned that negotiations have made little headway and that the chance of averting the tariffs is low. They plan to examine the legal basis of any duties and respond accordingly after the USTR decision.