The Trump administration is tacking on a 25% duties for Brazil, kicking off a renewed rollout of global tariffs. A follow-up move that could cover more than 80 countries is expected within weeks.
The official notice was released on Wednesday night, with the Brazilian tariffs going into effect on July 22. It carves out some major exceptions like oil and gas, beef, coffee, and oranges,
The highly specific list of exceptions runs to nearly 100 pages and includes items where tariffs “could lead to the unavailability of domestic supply … that could cause economy-wide disruptions.”
The move follows an investigation under Section 301 of the Trade Act of 1974. US Trade Representative Jamieson Greer said there was an array of issues with Brazil, from digital trade to market access for US businesses.
This is also the latest twist in a tense 18 months of US-Brazil trade relations. President Trump often focused on levying tariffs as high as 50% over what he described as a witch hunt of former Brazilian president and Trump ally Jair Bolsonaro, who was convicted of planning a coup after he lost reelection.
Secretary of State Marco Rubio added that Brazil has “not negotiated with the US in good faith” and that current President Luiz Inácio Lula da Silva — who defeated Bolsonaro in that election — “has put his own ego ahead of making a deal.”
President Lula also weighed in, calling the tariffs a “lamentable milestone,” noting that the US has a trade surplus with Brazil. He slammed the move as “part of the plot built with the active collaboration of the Bolsonaro family.”
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But for markets and importers, the move is a prelude to a much more sweeping array of global tariffs.
A parallel investigation, also under Section 301 of the Trade Act of 1974, took a step forward on June 2 with the move to a public comment period. It claimed that dozens of countries had failed to counteract goods being made with forced labor, which “burdens or restricts U.S. commerce.”
This forced labor report is leading to a 10% tariff on the EU and 14 other nations, such as Canada. Another 45 countries, including China, are set to face a 12.5% rate.
The reaction was immediate, with the EU at the time calling the move “unjustified.”
Other Section 301 investigations are ongoing and could result in additional tariffs in the months ahead. Most notably, one focused on excess structural capacity also includes many major trading partners. Another is focused on Vietnam.
