US, 25% tariff on Brazilian products - The decision comes into effect on July 22, Lula promises a response
The United States has imposed 25% tariffs on most imports from Brazil, effective next week, ending a year-long investigation into what Washington calls unfair trade practices and reigniting tensions with the Latin American country after negotiations failed.
The measure, taken under Section 301 of the US Trade Act of 1974, targets several Brazilian practices, such as orders forcing US technology companies, including X, Meta and Google, to remove certain political content and suspend accounts of US residents, the preferential tariffs that Brazil applies to Mexico and India, weak protection of intellectual property rights, and barriers to entry into the Brazilian ethanol market.
The 25% tariff, which will take effect on July 22, will apply to most imports from Brazil, with exceptions for certain goods such as beef, orange juice, aircraft and their parts, and energy products. Brazilian President Luiz Inacio Lula da Silva, in a statement posted on X, called the tariffs unfounded and vowed to take countermeasures, while also raising the issue within the framework of the WTO dispute settlement mechanism.
“There is no justification for unilateral measures, given that Washington has had a cumulative surplus of $424.5 billion in goods and services with Brazil over 15 years,” the president said, citing U.S. government data. The United States’ goods trade surplus with Brazil was $14.4 billion last year, nearly double the previous year.
The new tariffs follow a U.S. Supreme Court ruling in February that struck down President Donald Trump’s previous 50% tariffs on Brazilian goods, leaving in place a global tariff of 10%. In a post on X, U.S. Secretary of State Marco Rubio said the Brazilian government “did not negotiate in good faith” and that the tariffs were the price Lula da Silva must pay for putting his ego before reaching a deal.
The dispute has also been reflected in Brazil's upcoming presidential election, due in October. Lula has accused Senator Flavio Bolsonaro of helping to impose the tariffs after his visit to Washington, although the senator denied this and said he planned to convince the Trump administration to delay the tariffs until after the election.
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