The United States is imposing 25% tariffs on most imports from Brazil, concluding a yearlong investigation into practices the Trump administration says harm American workers and companies. The tariffs take effect July 22.
U.S. Trade Representative Jamieson Greer announced the action under Section 301 of the Trade Act of 1974, citing Brazilian policies spanning digital trade and electronic payment services, unfair preferential tariffs for Mexico and India, weak anti-corruption enforcement, inadequate intellectual property protections, ethanol market barriers, and illegal deforestation.
"Extensive negotiations with Brazil over the past year have not resolved these issues, but we remain open to continuing negotiations with Brazil to bring about long-needed changes to the problems identified in this investigation," Greer said in a statement.
According to USTR, the tariffs apply broadly across Brazilian imports, with carve-outs for goods such as beef, coffee, orange juice, aircraft and aircraft parts, and energy products. The exemption list was subsequently expanded after public comment to include organic honey, pig iron, unflavored instant coffee, aluminum hydroxide, used clothing, and certain animal hides, furskins, and leather.
Brazilian President Luiz Inácio Lula da Silva rejected the decision, saying there was no justification for the tariffs and vowing to pursue countermeasures under Brazil's Reciprocity Law and to raise the matter through the World Trade Organization's dispute settlement process. In support of his position, Lula cited U.S. government data showing Washington had accumulated a $424.5 billion goods and services surplus with Brazil across the prior 15 years, according to CNBC.
Secretary of State Marco Rubio dismissed that position in a post on X $TWTR. "President Lula and his government have not negotiated with the U.S. in good faith," Rubio wrote. "For the past year, Lula has put his own ego ahead of making a deal for the welfare of the Brazilian people, and these tariffs are the price for that."
The Brazil investigation, which USTR opened in July 2025, involved two public hearings, more than 360 written submissions, and direct consultations with Brazilian government officials. USTR said those consultations did not resolve U.S. concerns.
The Trump administration has turned to Section 301 authority to rebuild a broad tariff regime after the Supreme Court struck down levies Trump had imposed through the International Emergency Economic Powers Act earlier this year. USTR has now initiated nearly 80 such investigations in total, leaving China, the European Union, India, Japan, South Korea, Mexico, and other countries facing the prospect of new tariffs, according to NBC News.
Brazil is additionally subject to a distinct Section 301 inquiry focused on forced labor in supply chains, with a ruling anticipated by July 24; if it follows the expected outcome of a 12.5% additional duty, Brazil's cumulative tariff exposure would reach 37.5%, according to CNN.