The administration of US President Donald Trump has proposed imposing new 25% tariffs on imports from Brazil in response to allegations of unfair trade practices.
U.S. Trade Representative Jamison Greer announced new punitive tariffs late Monday, stemming from issues such as digital trade and illegal deforestation.
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The new tariffs will be imposed under Section 301 of the U.S. Trade Policy. The law gives the U.S. government broad powers to impose trade sanctions based on violations of trade agreements or trade practices deemed “unfair” under the Trade Act of 1974.
Greer said the investigation began in July. The conduct being investigated related to issues such as illegal deforestation, access to the ethanol market, and anti-corruption enforcement, among other important issues, according to a summary released Tuesday by the U.S. Department of Commerce.
In a 107-page document, the U.S. government said trade practices between the two countries are “unreasonable and burden or restrict U.S. commerce,” citing agreements Brazil has with Mexico and India.
“Brazil’s trade agreements with Mexico and India also create incentives for U.S. offshore production by creating economic advantages for exports from these countries to Brazil as opposed to exports from the United States,” the document states.
There will be a comment period for the public to weigh in on the proposed tariffs, starting Thursday. The written comment period ends on July 1st, and a public hearing will be held in Washington on July 6th.
Products exempt from tariffs include beef, coffee, rare earths, other metals, energy and aircraft parts.
Mr. Greer said on CNBC that the United States will release further findings on unfair trade practices in the coming weeks to address what he called a “huge” trade deficit.
However, data shows that the US maintains a trade surplus with Brazil. In March, Brazil bought $3.3 billion worth of goods from the United States, more than the $2.9 billion it exported, resulting in a trade surplus of $420 million.
Other countries included in the survey include China and Vietnam.
The new tariffs partially replace the 50% tariffs on many Brazilian products that President Trump imposed last year, and the 40% tariffs serve as punishment for Brazil’s prosecution of former President Jair Bolsonaro, an ally of Trump.
The White House recently eliminated tariffs on some aluminum, copper and steel imports, including agricultural machinery such as harvesters. These tariffs will be reduced from 25% to 15%. The tariffs expire in December 2027.
The new tariffs come after the Supreme Court in February struck down the White House’s use of the International Emergency Economic Powers Act (IEEPA) to impose sweeping tariffs around the world.
“These are the first of many new tariffs to replace IEPPA’s national security tariffs. A public comment period will allow for potential modest adjustments or exemptions. The end result will be some inflationary pressures relative to past months, but not relative to a year ago,” Rachel Ziemba, senior adjunct fellow at the Center for a New American Security, told Al Jazeera.
political tension
The change comes despite President Luiz Inacio Lula da Silva’s visit to Washington last month as relations have deteriorated in recent months.
The U.S. State Department also designated two Brazilian criminal organizations as “terrorist organizations,” a move that supports Lula’s main rival in the October election, Sen. Flavio Bolsonaro, and over the objections of Brazilian officials.
“I have unequivocally asked President Trump not to impose tariffs on our companies,” Bolsonaro wrote in X on Tuesday. “Tariffs are not the solution.”
The White House did not respond to Al Jazeera’s request for comment.
