The United States government recently announced a new 25 percent tariff on Brazilian goods, citing unfair trade practices as the primary reason. This decision follows tariffs imposed by President Trump last year to benefit Brazil’s former President Jair Bolsonaro.
A senior administration official specified that the new tariff will target numerous Brazilian products but will exclude some key exports. Notably, oil, gas, beef, coffee, oranges, and aircraft parts will not be affected. However, Brazilian ethanol will be subject to the tariff when it comes into effect next Wednesday.
Prior to this announcement, Brazil hinted at potential retaliatory actions in response to U.S. trade measures. Last year, the Trump administration had initially imposed a 40 percent tariff on various Brazilian goods but later eased some of these tariffs following a meeting with Brazil’s current president, Luiz Inácio Lula da Silva.
This adjustment came as President Trump acknowledged the Supreme Court’s ruling in February, which deemed his previous use of an emergency law to impose tariffs unlawful. Consequently, Trump rescinded the remaining tariffs on Brazil and other countries. A temporary 10 percent tariff on almost all imports served as a stopgap measure but is set to expire this month.
The administration’s recent tariff decision is based on findings from an investigation into Brazil’s trade practices conducted last July under Section 301. This same section will be invoked to implement the upcoming tariff, as well as to prepare additional tariffs targeting multiple countries, potentially including further measures against Brazil.