US Imposes 25% Tariff on Brazilian Imports, Citing Section 301 of Trade Law
Tariffs Take Effect from July 22
Beef, Coffee, and Other Major Exports Excluded
The United States has announced that it will impose a 25% tariff on certain goods from Brazil. This measure will be implemented under Section 301 of U.S. trade law on the grounds of correcting unfair trade practices. Voices expressing concern over potential U.S. tariff pressure are growing.
According to the Wall Street Journal (WSJ) and the New York Times (NYT) on July 15 (local time), the Office of the United States Trade Representative (USTR) has decided to impose a 25% tariff on thousands of Brazilian products, excluding major exports such as oil and gas, beef, coffee, oranges, and aircraft parts, after more than a year of investigation. The tariffs will take effect starting July 22.
The United States is implementing this tariff action based on Section 301 of its trade law. Section 301 is a provision that allows the executive branch to investigate and impose retaliatory tariffs or other penalties in response to another country's unfair trade practices. Jamieson Greer, the U.S. Trade Representative, stated in a press release that "Brazil's unfair trade practices have blocked U.S. workers and producers from gaining access to the Brazilian market, which consists of more than 210 million people."
Marco Rubio, U.S. Secretary of State, announced on social networking service X (formerly Twitter) that U.S. President Donald Trump had directed the USTR to impose a 25% tariff on most Brazilian imports. Secretary Rubio emphasized, "There should be no confusion about the reason," adding, "President Luiz Inacio Lula da Silva and his government have not negotiated in good faith with the United States." He continued, "President Lula's economic policies are harmful for Americans as well as Brazilians."
President Trump imposed a total tariff of 50% on Brazilian products last year. However, the U.S. Supreme Court later nullified this action. Currently, Brazilian imports that are not exempt are subject to a 10% tariff.
The Brazilian government, in a statement posted on President Lula's X account, declared that it rejects the U.S. tariff measures and announced it would invoke the Economic Reciprocity Act in response. The government criticized the day as "a regrettable milestone" in the history of Brazil-U.S. relations. It also stated that it would seek to resolve the issue through the World Trade Organization (WTO).
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The Brazilian side explained that it had engaged in consultations with the USTR to conclude the investigation under Section 301 and submitted evidence refuting the U.S. claims of unfair trade practices.
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