WASHINGTON — The United States said on Wednesday it will impose a new 25% tariff on most imports from Brazil beginning July 22, citing what it described as unfair Brazilian trade practices after completing a year-long investigation under Section 301 of the Trade Act of 1974.
The Office of the U.S. Trade Representative (USTR) said the action follows findings that Brazil maintained policies related to digital trade and electronic payment services, preferential tariffs, anti-corruption enforcement, intellectual property protection, ethanol market access and illegal deforestation that burden or restrict U.S. commerce. USTR said the measure came after public hearings, hundreds of public submissions and negotiations with the Brazilian government failed to resolve Washington's concerns.
The administration said several major Brazilian exports will be exempt from the new duties, including beef, coffee, aircraft parts and components, rare earths and certain other products considered important to U.S. supply chains. The tariffs will nonetheless apply to thousands of Brazilian products, including sectors such as sugar and ethanol.
Brazil's government condemned the decision, rejecting the U.S. allegations of unfair trade practices and saying it would begin procedures under its economic reciprocity law while pursuing the dispute through the World Trade Organization. President Luiz Inácio Lula da Silva's administration said the tariffs were unjustified and would damage bilateral trade relations.
The new duties mark the latest escalation in trade tensions between the two countries following unsuccessful negotiations over the past year. U.S. officials said the tariffs will take effect as scheduled on July 22, while Brazil has not yet announced specific retaliatory measures.
