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[INTERNATIONAL] · United States, Brazil · 100 sources

US 25% tariff on Brazilian exports sparks government response

The United States announced a new 25% tariff on a range of Brazilian products under Section 301 of the Trade Act, affecting roughly 18% of Brazil’s exports to the U.S., valued at about US$ 7.4 billion. Sectors cited include machinery, steel, aluminium, footwear and automobiles, as well as the Brazilian instant‑payment system Pix, which Washington frames as a geopolitical challenge.

Brazil’s government, led by Vice‑President Geraldo Alckmin and the Ministry of Development, Industry, Trade and Services (MDIC), convened meetings with industry groups and state officials. It is preparing a three‑pillar response: financial support through the “Plano Brasil Soberano” credit line, diversification of export markets via ApexBrasil’s R$ 130 million aid, and ongoing dialogue with producers. State‑level actions were noted in Santa Catarina and Rio Grande do Sul, where up to 50% of regional exports could be hit.

Economic analysts say the tariff’s impact on the overall trade balance will be limited because the United States now accounts for only about 9‑10% of Brazil’s export destinations, with Asia – particularly China – remaining the dominant market. Nonetheless, the measure raises political tension; critics such as Senator Ricardo Salles argue Brazil should have negotiated, while Alckmin stresses that the reciprocal‑law response is a corrective, not retaliatory, move.

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