U.S. imposes 25% tariff on most Brazil imports starting July 22
The United States will impose a 25% tariff on most imports from Brazil starting July 22, the U.S. Trade Representative's office said on Wednesday, the first action under the Trump administration's new tariff strategy that could eventually affect dozens of countries.
The new programme, launched after the U.S. Supreme Court tore down the centrepiece of Trump's tariff system earlier this year, is based on investigations into unfair trade practices under Section 301 of the U.S. Trade Act.
Close to 80 trade investigations have been opened by the USTR office and a new wave of tariffs could be imposed on dozens of countries, including China, the European Union, India, Japan, South Korea and Mexico.
Exemptions include beef, coffee and aircraft parts; Brazil plans response
Wednesday's announcement follows a proposal by the Trump administration in June to impose a punitive tariff of 25% on many imports from Brazil after deciding its practices were unfair on a range of issues from digital trade to illegal deforestation.
"Extensive negotiations with Brazil over the past year have not resolved these issues, but we remain open to continuing negotiations with Brazil to bring about long-needed changes to the problems identified in this investigation," U.S. Trade Representative Jamieson Greer said in a statement.
Brazilian President Luiz Inacio Lula da Silva said the U.S. decision was without any justification. Brazil would immediately begin proceedings to invoke instruments provided for under the "Reciprocity Law" and revisit the matter within the framework of the WTO dispute settlement mechanism, he said on X.
The tariffs would apply to thousands of Brazilian imports, including sugar, agricultural machinery, apparel, electrical machinery, paper and steel.
The U.S. said it would exempt all the products proposed for exemption in the June notice, except high-purity dissolving pulp and non-pharmaceutical applications of certain products. The exemptions include beef, coffee, rare earths, energy products, aircraft and aircraft parts.
The U.S. also added organic honey, pig iron, unflavoured instant coffee and some other products to the list of exemptions on Wednesday.
Brazil has also been included in a separate Section 301 investigation by the USTR, due to conclude on July 24, into connections to forced labour in the supply chains of dozens of countries. The probe is expected to result in an additional 12.5% tariff, bringing the total burden for Brazilian products to 37.5%.
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