The U.S. Trade Representative proposed new tariffs on many Brazilian goods after finding that Brazil’s policies on digital trade, intellectual property, ethanol access and other issues unfairly burden U.S. commerce.
By yourNEWS Media Newsroom
The Trump administration has proposed a 25% tariff on many Brazilian imports after concluding that Brazil’s trade practices unfairly restrict U.S. commerce across several sectors, including digital services, intellectual property, ethanol access and environmental enforcement.
U.S. Trade Representative Jamieson Greer announced the proposed duties Monday after releasing the results of a Section 301 investigation opened last year under the Trade Act of 1974. The Office of the United States Trade Representative said the review found actionable concerns involving Brazil’s policies on electronic payment services, preferential tariffs, intellectual property protections, ethanol market access and illegal deforestation.
Brazil’s practices in the areas examined “are unreasonable and burden or restrict U.S. commerce, are thus actionable under Section 301(b) of the Trade Act,” the USTR said.
Greer said the investigation was intended to address problems U.S. officials have raised with Brazil for years.
He said he launched the Section 301 review to address “longstanding and pervasive U.S. concerns with certain of Brazil’s trade policies and practices.”
Despite recent talks with Brazilian President Inacio Lula da Silva and members of his cabinet, Greer said the two countries remain divided over the issues identified in the investigation.
The United States and Brazil “continue to have substantial differences in resolving issues identified in this investigation,” Greer said.
The proposed 25% duties would partially replace tariffs imposed by President Donald Trump last year on many Brazilian goods. Trump had previously placed 50% tariffs on several Brazilian imports, including a 40% punitive component tied to Brazil’s prosecution of former President Jair Bolsonaro, a Trump ally. The U.S. Supreme Court struck down those duties in February.
The new tariff plan would not apply to all Brazilian products. The USTR excluded several categories, including beef, coffee, rare earths, certain metals and ores, aircraft, aircraft parts, many fruits and nuts, crude oil, petroleum products, pharmaceutical compounds, organic chemicals and fertilizers.
The proposed duties also would not apply to Brazilian goods already covered by national security tariffs under Section 232 of the Trade Expansion Act of 1962. Those include 50% duties on steel, aluminum and copper, 25% duties on finished goods made from those metals and 25% duties on motor vehicles and auto parts.
The USTR is seeking public comment on the proposed tariffs through July 1 and has scheduled a public hearing for July 6. The agency faces a July 15 deadline to take responsive action in the Brazil investigation.
Section 301 gives the U.S. government authority to respond to foreign trade practices it finds unfair or harmful to American commerce. Trump used the same statute during his first term to impose broad tariffs on Chinese imports.
The Brazil case is one of several active Section 301 investigations that could result in new duties. The USTR is also examining excess industrial capacity in China and 15 other trading partners, as well as enforcement of forced labor bans in 60 countries. On Friday, the agency opened a new investigation into Vietnam’s intellectual property practices.
The proposed tariff marks another step in the administration’s broader effort to use trade enforcement tools against countries it says have failed to provide fair access to U.S. companies and products.