USA Tariffs Select Brazilian Imports 25% for Unfair Trade
The United States is implementing 25 percent tariffs on imports from Brazil following an assessment of various trade practices that it considers unfair by the world’s 10th-largest economy. The tariffs, initially proposed last month, are set to take effect on July 22. The order provides exemptions for certain goods that are not manufactured domestically or that officials believe could potentially disrupt supply chains. Exempted products encompass coffee, beef, oranges and orange juice, certain oil and gas energy products, as well as aerospace parts and components. The Office of the US Trade Representative has determined, following a comprehensive yearlong investigation, that Brazil engages in a variety of unfair trade practices. These include inadequate enforcement of anti-corruption measures and the imposition of its own unfair tariffs, alongside other actions deemed unreasonable and inequitable.
The United States, however, has maintained a goods trade surplus with Brazil for several years. US Trade Representative Jamieson Greer stated that the action was essential to guarantee that American workers and companies can compete on an equitable basis. “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,” he said. In early June, following warnings from US officials regarding proposed tariffs, Brazilian President Luiz Inacio Lula da Silva expressed his indignation. He instead highlighted political factors, attributing responsibility to his opponent in the nation’s October elections, Sen Flavio Bolsonaro.
Bolsonaro recently visited Washington and is the son of former President Jair Bolsonaro, who was an ally of President Donald Trump. Secretary of State Marco Rubio said in a post on X about the announcement of the tariffs: “Let there be no confusion about why: President Lula and his government have not negotiated with the US in good faith. His economic policies are bad for Americans and bad for Brazilians. For the past year, Lula has put his own ego ahead of making a deal for the welfare of the Brazilian people, and these tariffs are the price for that.” The tariffs are being imposed under Section 301 of the Trade Act of 1974, allowing the US to launch the investigation into Brazil’s trade practices.
The US Supreme Court in February ruled against numerous tariffs imposed by Trump under the International Emergency Economic Powers Act of 1977. The court determined that he exceeded his jurisdiction under that act by implementing extensive tariffs on US trading partners, Brazil included. Trump had, under that law, imposed a 50 per cent tariff on Brazil in response to its prosecution of Jair Bolsonaro for attempting to overturn his loss in the 2022 election. However, Trump’s rapport with Lula appeared to enhance in May, during his visit to the White House.
