USTR Proposes 25 Percent Tariff on Brazil Imports Due to Unfair Trade Practices

The Office of the United States Trade Representative (USTR) on June 1 proposed imposing a 25 percent tariff on imports from Brazil after finding that the country had engaged in unfair trade practices.

In a statement, the USTR said its Section 301 investigation on the country found that certain Brazilian policies and practices involving digital trade and electronic payment services, preferential tariffs, intellectual property protection, ethanol market access, and illegal deforestation “are unreasonable and burden or restrict U.S. commerce.”

Section 301 investigations look into potential unfair trade practices by trading partners.

U.S Trade Representative Jamieson Greer said the probe was initiated at President Donald Trump’s direction to address “longstanding and pervasive U.S. concerns” on certain Brazilian trade policies and practices.

Greer said that Trump had engaged in constructive talks with Brazilian President Luiz Inácio Lula da Silva and his Cabinet over the past year, but “substantial differences” remain over issues identified in the investigation.

“I look forward to continuing engagement with the Brazilian Government in advance of the July 15, 2026, statutory deadline for taking responsive action,” he said in the statement.

Following the finding, the USTR proposed a 25 percent tariff on Brazilian products. The proposed tariff will not apply to products already subject to national security-related tariffs under Section 232 of the Trade Expansion Act, which include steel, aluminum, and copper.

The USTR said products exempted from ​the proposed tariffs would include crude oil and petroleum products, pharmaceutical compounds, organic chemicals, and fertilizers.

Other exempted products include beef, coffee, rare ​earths, certain other metals and ores, and aircraft parts.

The agency invited the public to provide written comments on the proposed tariffs through July 1 and scheduled a public hearing for July 6, according to its Federal Register notice.

The USTR also said the U.S. government would continue to “engage intensively” with Brazil to address its concerns.

The Brazilian government has not publicly commented on the USTR’s statement.

Trump previously imposed a 50 percent tariff on Brazilian goods, including existing reciprocal tariffs, over Brazil’s non-tariff trade barriers and prosecution of former Brazilian President Jair Bolsonaro over charges related to an alleged plot to overturn the nation’s 2022 election results.

Trump said the 50 percent tariff was “far less than what is needed” to create a level playing field between the United States and Brazil.

“Our relationship has been, unfortunately, far from reciprocal,” the president wrote in a July 9, 2025, letter to his Brazilian counterpart.

Lula has rejected Trump’s claims and threatened to impose retaliatory tariffs on the United States. Trump’s tariffs were struck down by the U.S. Supreme Court in February.

Data from the USTR show that the United States recorded a $14.4 billion trade surplus with Brazil in 2025, with total goods trade reaching an estimated $94.3 billion.

Reuters contributed to this report.