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US Announces New 25% Tariffs on Brazil for ‘Unfair’ Trade Practices
The U.S. said Brazil’s policies harmed American farmers, workers and exporters, and some goods including coffee, beef and aircraft parts are exempted.
Starting July 22, the United States will impose a 25% tariff on most imports from Brazil, marking the first action under the Trump administration's new tariff strategy announced on Wednesday.
U.S. Trade Representative Jamieson Greer stated that negotiations over the past year failed to resolve alleged unfair practices, including illegal deforestation and Brazil's Pix instant payment system.
Exemptions now include beef, coffee, rare earths, and pig iron, while the probe is expected to result in an additional 12.5% tariff, bringing the total burden for Brazilian products to 37.5%.
Brazilian President Luiz Inacio Lula da Silva rejected the decision as unjustified and plans to invoke the "Reciprocity Law" within the WTO dispute settlement mechanism.
This program stems from investigations under Section 301 of the U.S. Trade Act; nearly 80 investigations have been opened by the USTR office, potentially affecting China, India, and the European Union.
The United States announced on Wednesday a new 25% tariff on certain imports from Brazil, whose government repudiated the measure and announced the activation of a reciprocity law passed last year.