Rio de Janeiro, Brazil, with Sugarloaf Mountain and Botafogo Beach in the background.
Jeremy Walker Stone | Getty Images
The United States will impose 25% tariffs on most imports from Brazil starting next week, ending a year-long investigation into what Washington calls unfair trade practices and reigniting tensions with Brazil after negotiations broke down.
The action was taken under Section 301 of the Trade Act of 1974 and targets Brazilian practices, including orders directing U.S. technology companies, including X, Meta, and Google, to remove certain political content and suspend accounts belonging to U.S. residents, preferential tariffs for Mexico and India, weak intellectual property enforcement, and barriers to the ethanol market.
The 25% tax, scheduled to take effect on July 22, will apply to most imports from Brazil, but some items will be exempt, including beef, orange juice, aircraft and parts, and energy products.
Brazil’s Trade Ministry did not immediately respond to CNBC’s request for comment.
The new tariffs were introduced after the Supreme Court in February struck down President Donald Trump’s previous 50% tariffs on Brazilian goods, leaving only 10% tariffs worldwide. President Trump is seeking to restore tariff powers by initiating Section 301 investigations, which allow the United States to impose penalties without additional Congressional approval on countries found to have engaged in unfair trade practices.
The U.S. Trade Representative’s office said in a statement that the additional tariffs are necessary to level the playing field for American workers and businesses.
Shortly after the official announcement, Secretary of State Marco Rubio wrote in a post on X that President Luiz Inácio Lula da Silva’s government was “not negotiating in good faith” and that the tariffs were the price of Lula “prioritizing his ego over a deal.”
The move comes after months of engagement, including several high-level meetings between Brazilian officials and USTR representatives in recent weeks.
Lula reportedly said last month that Brazil would not accept the treatment it received, referring to then-President Trump’s proposed 25% tariffs.
A separate U.S. investigation into forced labor enforcement could result in additional tariffs of 25% plus 12.5% on Brazilian goods, with a decision expected next week.
The controversy has spilled over into Brazil’s presidential election, scheduled for October. Lula accused Sen. Flavio Bolsonaro of cooperating with the tariffs after his visit to Washington, which the senator denies, saying he plans to persuade the Trump administration to delay the tariffs until after the presidential election.
