U.S. Plans New 25% Tariff on Brazil Over Trade Practices

The United States plans to implement a 25 percent tariff on Brazilian goods next week due to alleged unfair trade practices. This move comes as the Trump administration targets thousands of Brazilian products, though some essential exports like oil, gas, beef, coffee, oranges, and aircraft parts will be exempt. Notably, Brazilian ethanol will be subject to the tariff, a senior administration official stated. The changes are set to take effect next Wednesday.

Brazil has considered possible retaliatory measures, according to a government official. The U.S. previously imposed a 40 percent tariff on several Brazilian exports last year. However, President Trump later reduced some of these tariffs after discussions with President Luiz Inácio Lula da Silva in November.

In February, the Supreme Court determined that Trump’s application of an emergency law to enforce tariffs was illegal. This decision forced the removal of remaining tariffs on Brazil and certain other nations. As a temporary solution, the administration implemented a 10 percent tariff on nearly all imports, but this measure will conclude this month.

Last July, the Trump administration launched an inquiry into Brazil’s trade practices using Section 301 of U.S. trade law. This same law will facilitate next week’s tariff imposition. Additionally, the administration is preparing further tariffs under Section 301 that could impact several countries, with Brazil potentially facing additional tariffs as well.