BY COMFORT OGBONNA
The United States will impose a 25% tariff on most imports from Brazil beginning July 22, marking the first major trade action under the Trump administration’s new tariff strategy, a move that could eventually lead to higher duties on goods from dozens of countries around the world.
The U.S. Trade Representative’s office announced the measure on Wednesday, saying the tariffs are part of a broader effort to address what Washington considers unfair trade practices by foreign governments. The new approach follows a decision by the U.S. Supreme Court earlier this year that struck down a key part of President Donald Trump’s previous tariff framework, prompting officials to pursue a different legal pathway.
The new tariff programme relies on investigations conducted under Section 301 of the U.S. Trade Act, which allows the government to respond to alleged unfair trade practices that harm American businesses and workers.
Nearly 80 trade investigations have already been opened by the U.S. Trade Representative’s office, raising the possibility that additional tariffs could be introduced against a wide range of countries, including major trading partners such as China, the European Union, India, Japan, South Korea, and Mexico.
The decision targeting Brazil follows a proposal announced by the Trump administration in June to impose a 25% tariff on a broad range of Brazilian goods after determining that certain Brazilian policies and practices were unfair. The concerns cited by U.S. officials included issues related to digital trade, market access, and environmental policies, including illegal deforestation.
U.S. Trade Representative Jamieson Greer said the United States had attempted to resolve the disputes through negotiations but had not reached an agreement with Brazil.
“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,” Greer said in a statement.
Brazilian President Luiz Inácio Lula da Silva criticized the U.S. decision, saying the tariffs lacked justification and represented an unfair trade measure against his country.
Lula said Brazil would immediately begin procedures under its Reciprocity Law and consider taking the dispute to the World Trade Organization’s dispute settlement mechanism. He announced his response in a statement posted on social media platform X.
The dispute has also intensified political tensions between the two governments. U.S. Secretary of State Marco Rubio, who previously faced criticism from Lula after the tariff proposal was introduced, blamed the Brazilian government for failing to reach an agreement with Washington.
Rubio accused Lula’s administration of not negotiating seriously and argued that the tariffs were a consequence of Brazil’s unwillingness to address U.S. concerns.
The new tariffs are expected to affect thousands of Brazilian exports to the United States, including products such as sugar, agricultural equipment, clothing, electrical machinery, paper products, and steel.
However, some important Brazilian exports will be excluded from the tariff measures. Products including coffee, beef, pig iron, and aircraft will not face the additional duties, according to the announcement.
The trade investigation could result in an additional 12.5% tariff increase, potentially raising the total tariff burden on some Brazilian products to 37.5% once all measures are implemented.
The move represents a significant escalation in trade tensions between the United States and Brazil, two of the largest economies in the Americas. Businesses in both countries are expected to closely monitor the impact of the tariffs on supply chains, export costs, and consumer prices.
The broader tariff strategy signals that the Trump administration is prepared to use trade measures more aggressively as part of its economic policy agenda. With investigations involving dozens of countries underway, companies and governments worldwide are watching closely for possible changes to global trade relationships.
Original article
Comments