U.S. Announces 25% Tariff Hike on Certain Brazilian Goods, Lula Slams Move

Central Message

(CNA, Washington, 15th - International News Compilation) The United States announced today that it will impose a 25% additional tariff on certain imported goods from Brazil, a decision made after a year-long investigation into trade and other measures by the Latin American nation. Brazilian President Luiz Inacio Lula da Silva has responded by condemning the latest U.S. action.

According to reports from AFP and the Associated Press, a senior U.S. official stated that the new measures will take effect on July 22.

However, the order exempts certain products that are not produced domestically in the U.S. or that officials believe could disrupt supply chains. The exemption list includes coffee, beef, oranges and orange juice, certain petroleum and natural gas energy products, and aerospace components.

The Office of the United States Trade Representative (USTR) concluded a year-long investigation finding that Brazil maintains several unfair trade practices, including inadequate enforcement against corruption and the imposition of unjust tariffs. These actions are deemed both unreasonable and unfair. Nevertheless, the U.S. has maintained a goods trade surplus with Brazil for many years.

U.S. Trade Representative Jamieson Greer stated in a press release: 'Brazil’s unfair trade practices prevent American workers and businesses from accessing this important market.'

He added: 'We remain willing to continue negotiations with Brazil to advance necessary reforms on the issues identified in this investigation.'

In response, President Lula’s office issued a statement on the social media platform X: 'The Brazilian government condemns the U.S. government’s decision today to impose a 25% tariff increase on Brazilian products.' The statement also explicitly denies the allegations of 'unfair trade practices.'

The U.S. tariff hike is being implemented under Section 301 of the 'Trade Act of 1974,' which authorizes the U.S. to investigate foreign trade practices.

In February of this year, the U.S. Supreme Court ruled that former President Trump’s use of the 'International Emergency Economic Powers Act (IEEPA)' of 1977 to impose reciprocal tariffs was invalid. The justices determined that Trump overstepped his authority by invoking IEEPA to impose broad tariffs on trade partners, including Brazil.

Trump had previously imposed a 50% tariff on Brazil under IEEPA, in protest against the Brazilian government under President Lula for prosecuting former President Jair Bolsonaro, who attempted to overturn the results of the 2022 election after losing.