US imposes 25% tariff on Brazil after trade probe, exempting beef and coffee
The Trump administration will levy a 25% duty on most Brazilian imports starting July 22, following a Section 301 investigation that found policies on digital payments, ethanol, and deforestation harm US commerce.
Tariff announcement
On July 15, the US Trade Representative announced a 25% tariff on a broad range of Brazilian imports, set to take effect on July 22. The move follows a year-long investigation under Section 301 of the Trade Act of 1974. USTR Jamieson Greer said the action was at President Trump's direction and followed extensive but unsuccessful negotiations. A senior US official confirmed the timeline, noting the delay until July 22 was "the time needed to implement it in customs systems."
Brazil's unfair trading practices have prevented US workers and producers from accessing this important market with over 210mn consumers. Extensive negotiations with Brazil over the past year have not resolved these issues.
The investigation's findings
The USTR probe, launched in 2025, identified several Brazilian policies that allegedly burden US commerce. These include restrictions on US ethanol, digital trade barriers favouring the domestic Pix payment system (used daily by millions of Brazilians), intellectual property concerns, and deforestation in the Amazon. The US argues that illegal deforestation gives Brazil an unfair competitive advantage by expanding its agricultural production and displacing American exports in third-country markets. The investigation also flagged trade advantages Brazil grants to India and Mexico that do not extend to the United States. A senior US official said the administration had been "trying for well over a year" to negotiate, but that Brazil had not addressed the concerns.
What is covered and what is exempt
The tariff applies to most imports, but the administration carved out exemptions for goods the US does not produce in sufficient quantities or relies on Brazil for. Excluded items include beef, coffee, orange juice, petroleum and gas, metals, and certain aircraft parts. Affected products include wood, machinery, and corn ethanol, according to experts. Brazil's annual exports to the US total $37.7bn, with about one-fifth expected to be hit by the duty. The exemptions are partly designed to limit the impact on US consumers ahead of November's midterm elections, as the administration tries to address affordability concerns.
Political backdrop
The tariff escalation unfolds against a backdrop of electoral tensions in both countries. In Brazil, Flavio Bolsonaro, son of former president Jair Bolsonaro and a presidential candidate, visited Trump at the White House on May 7, a move seen as a show of support for the right-wing challenger. President Lula's leftwing government views the US grievances as politically motivated rather than commercial. Washington recently designated two Brazilian drug-trafficking gangs as foreign terrorist organisations, over Brasília's objections, further straining ties between the two largest democracies in the Americas. The US Supreme Court struck down earlier Trump tariffs in February, pushing the administration to rely more heavily on Section 301 for new trade actions.
- USTR launches Section 301 investigation into Brazilian trade practices.
- US Supreme Court strikes down earlier Trump tariffs, prompting reliance on Section 301.
- Flavio Bolsonaro visits President Trump at the White House.
- USTR announces 25% tariff on Brazilian imports.
- Tariffs take effect.
Reactions and warnings
Secretary of State Marco Rubio accused Lula of not negotiating in good faith.
President Trump has ordered the US Trade Representative to impose a 25% tariff on most Brazilian imports. There should be no doubt about the reason: President Lula and his government have not negotiated in good faith with the United States.
Rubio added that Lula had "put his own ego ahead of reaching a deal that benefits the Brazilian people, and these tariffs are the price to pay for that." A US official warned Brazil against retaliation, saying that any countermeasures would force Washington to "adjust our approach." The tariffs are part of a broader push to reimpose duties after the Supreme Court ruling, with more Section 301 actions expected against other countries, including European nations over pharmaceutical pricing.
What comes next
The tariffs take effect on July 22. The US official indicated they could be lifted if Brazil addresses the unfair practices. Brazil has not yet announced any retaliatory measures, but the warning from Washington suggests the situation could escalate quickly if it does. The administration is expected to unveil additional Section 301 tariffs in the coming weeks.
