U.S. Trade Representative Jamieson Greer on Monday announced a proposed 25% tariff on several Brazilian imports, saying an investigation under Section 301 of the Trade Act of 1974 had identified a range of practices that burden American commerce. The proposed duties target what the administration described as unfair policies related to digital trade, electronic payment services, intellectual property protection, ethanol market access, and illegal deforestation. The U.S. has maintained a trade surplus with Brazil over the last decade, a dynamic that distinguishes the trade relationship from those with other major U.S. trading partners.
“I launched this Section 301 investigation at President Trump’s direction to address longstanding and pervasive U.S. concerns with certain of Brazil’s trade policies and practices,” Greer said in a statement. The trade representative said he and Trump have held “several constructive meetings” with Brazilian President Luiz Inácio Lula da Silva and his cabinet, with talks accelerating in recent weeks. “However, we continue to have substantial differences in resolving the issues identified in this investigation,” Greer said. “I look forward to continuing engagement with the Brazilian Government in advance of the July 15 statutory deadline for taking responsive action.”
The proposed 25% tariff marks the latest in a series of trade actions by the Trump administration that have faced significant legal hurdles. The president had previously imposed a 50% tariff on Brazil after the country prosecuted former president Jair Bolsonaro, a political ally of Trump, The New York Times reported. Since the Supreme Court in February ruled that Trump’s earlier tariff actions were illegal, the administration has launched Section 301 investigations on more than a dozen countries and introduced a 10% global tariff that was later raised to 15% before being struck down by the U.S. Court of International Trade.
Under Section 301, the government must conduct investigations on each targeted country and hold consultations and hearings before any tariffs can take effect. Greer is scheduled to hold a public hearing on July 6, and Brazil has until July 15 to address the concerns the trade representative outlined. The proposed tariffs would not apply to beef, coffee, aircraft equipment, rare earth metals, or some fruits and vegetables.