BRASILIA — Brazil on Thursday condemned the United States' decision to impose new 25% tariffs on a broad range of Brazilian imports, rejecting Washington's allegations of unfair trade practices and warning it would pursue legal and retaliatory measures under domestic and international trade rules.
The tariffs, announced by the Office of the U.S. Trade Representative following a year-long investigation under Section 301 of the Trade Act of 1974, are scheduled to take effect on July 22. U.S. officials said the duties target thousands of Brazilian products while exempting a number of items considered critical to U.S. supply chains, including coffee, beef, oranges, certain energy products and aerospace components.
In a statement, the office of Brazilian President Luiz Inácio Lula da Silva said the government "repudiates" the U.S. decision and rejected accusations that Brazil engages in unfair trade practices. The government said it would invoke Brazil's Reciprocity Law and raise the dispute through the World Trade Organization's dispute-settlement system.
The U.S. Trade Representative's office said its investigation concluded that Brazilian policies relating to digital trade, electronic payment services, anti-corruption enforcement, intellectual property protection, ethanol market access and illegal deforestation burden or restrict U.S. commerce. U.S. Trade Representative Jamieson Greer said the action was intended to protect American workers and businesses after negotiations with Brazil failed to resolve the concerns.
U.S. Secretary of State Marco Rubio said the Lula administration had not negotiated with Washington in good faith and defended the tariff action as part of the administration's broader trade strategy.
Brazil has denied the U.S. allegations, arguing there is no legal or economic basis for the unilateral measures. Lula's government has also pointed to the longstanding U.S. goods trade surplus with Brazil, saying the tariffs are unjustified and risk harming businesses and consumers in both countries.
The tariff package includes exemptions covering billions of dollars in annual trade. Brazilian industry groups welcomed the exclusion of products such as instant coffee and aircraft-related goods, saying the carve-outs would help preserve important export markets, although other sectors remain exposed to the new duties.
The latest measures mark another escalation in trade tensions between the two countries after months of negotiations failed to produce an agreement. Brazilian officials said they would continue pursuing diplomatic discussions while preparing formal legal challenges before the tariffs take effect next week.
