US Determines Brazil Engages in Unfair Trade, Proposes 25% Punitive Tariffs

U.S. Trade Representative Jamieson Greer announced that the Trump administration has determined Brazil engages in unfair trade practices, from digital trade to illegal deforestation, and proposed 25% punitive tariffs on various Brazilian goods under Section 301. The USTR will seek public comment until July 15, with items like beef and coffee excluded. Brazilian President Lula criticized the move as politically motivated.
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  • 📰 Published: June 3, 2026 at 06:02
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(Central News Agency, Washington, D.C., 2nd) U.S. Trade Representative Jamieson Greer stated that the Trump administration has determined Brazil engages in unfair trade practices, ranging from digital trade to illegal deforestation, and has proposed a new round of 25% punitive tariffs on various Brazilian goods exported to the United States.

According to Reuters, the Office of the U.S. Trade Representative said yesterday that the new measures, based on Section 301, cover areas such as electronic payment services, preferential tariffs, intellectual property protection, and ethanol market access.

The USTR will seek public comment on this new tariff proposal, with the final deadline for comments being July 15. Beef, coffee, rare earths and other metals, energy, and aircraft components are excluded from the proposed tariffs.

The USTR noted that after launching an investigation into Brazil's unfair trade practices under Section 301 of the Trade Act of 1974 last year, it found that some Brazilian practices were "unreasonable and burden or restrict U.S. commerce," leading to the proposal of punitive tariffs on Brazilian goods.

Brazilian President Luiz Inacio Lula da Silva responded to the proposed new measures today, accusing U.S. Secretary of State Marco Rubio of confronting Latin America.

In an interview with CNBC, Greer said the measures against Brazil were "quite nuanced" due to the broad scope of exclusions, and added that the USTR expects to announce more Section 301 investigation findings on unfair trade practices in the coming weeks, stating that substantial tariffs are necessary to correct the U.S.'s "massive" trade deficit.

Brazil's Foreign Ministry did not immediately respond to a request for comment from Reuters. Two informed Brazilian officials revealed that the U.S. rationale for the new tariffs on Brazil ignores many arguments Brazil has made in recent months, suggesting the policy's motivation is more political than technical. (Editor: Hong Qiyuan) 1150603