The administration of Donald Trump has proposed a new 25 percent tariff on imports from Brazil, citing concerns over unfair trading practices.
The announcement was made late Monday by Jamieson Greer, and is based on findings related to digital trade practices and alleged illegal deforestation linked to Brazilian supply chains.
The proposed measure adds to a broader set of tariff actions being advanced by the administration as part of its ongoing trade enforcement agenda, which has increasingly focused on environmental and regulatory issues alongside traditional trade imbalances.
The proposed 25 percent tariffs on imports from Brazil would be imposed under Section 301 of US trade law, a provision of the Trade Act of 1974 that allows the United States to respond to what it considers unfair trade practices or violations of international agreements.
Jamieson Greer said the measures follow an investigation launched in July into a range of issues, including illegal deforestation, ethanol market access, and anticorruption enforcement. According to a 107-page US government document, these practices were described as “unreasonable and burden or restrict US commerce.”
The report also raised concerns about Brazil’s trade relationships with countries such as Mexico and India, arguing that certain agreements may incentivise production shifts away from the United States by making exports from those countries to Brazil more financially attractive than US exports.
The proposal is currently subject to public consultation. The comment period opens on Thursday and runs until 1 July, followed by a public hearing scheduled for 6 July in Washington, where stakeholders will be able to present their views on the proposed tariffs.
The proposed 25 percent tariffs on imports from Brazil would include a wide set of exemptions covering key commodities and industrial inputs.
According to details released alongside the proposal, products such as beef, coffee, rare earths, other metals, energy resources, and aircraft parts would not be subject to the new duties.
Jamieson Greer said in an interview on CNBC that additional findings on unfair trade practices are expected to be released in the coming weeks. He stated that these measures are aimed at addressing what he described as a “giant” US trade deficit, signalling that further tariff actions or investigations could follow as part of the administration’s broader trade enforcement strategy.
However, available trade data appears to contradict the administration’s justification for the tariffs.
Figures show that the United States actually maintains a trade surplus with Brazil. In March alone, Brazil imported $3.3 billion worth of goods from the United States, while exporting $2.9 billion to the US, resulting in a US trade surplus of approximately $420 million.
This data challenges the narrative of a “giant” US trade deficit cited by Jamieson Greer, suggesting instead that trade flows between the two countries may be more balanced—or even favourable to the United States in the short term—depending on the period and measurement used.
Other countries, including China and Vietnam, are also listed among those under investigation as part of the broader tariff review process.
The proposed tariff on Brazilian imports would partly replace a previous 50 percent tariff imposed last year by the administration of Donald Trump. According to the report, 40 percentage points of that earlier tariff were linked to political concerns involving the prosecution of former Brazilian President Jair Bolsonaro, a known ally of Trump.
At the same time, the White House has recently eased duties on selected aluminium, copper, and steel imports, including certain agricultural machinery such as harvesters. Those tariffs have been reduced from 25 percent to 15 percent, though they are scheduled to remain in place until December 2027.
The new round of tariff proposals follows a February ruling by the US Supreme Court striking down the use of the International Emergency Economic Powers Act as a legal basis for sweeping global tariffs. In response, the administration has moved to construct new tariff measures under alternative statutory authorities.
Rachel Ziemba said the new framework represents a transition from emergency-based tariffs to more structured trade measures. She noted that while the changes may introduce some inflationary pressure in the short term, their broader economic impact is likely to be less severe than earlier tariff regimes, particularly when compared with price levels seen over the past year.
Political tensions
The tariff proposal comes despite recent diplomatic engagement, including a visit to Washington last month by Brazilian President Luiz Inácio Lula da Silva, as relations between the two countries have continued to deteriorate.
Tensions have also been heightened by a recent decision from the US State Department to designate two Brazilian criminal gangs as “terrorist organisations.” The move aligned with positions supported by Senator Flávio Bolsonaro, a political rival of Lula ahead of Brazil’s October election, and was opposed by Brazilian officials.
Separately, former Brazilian President Jair Bolsonaro said on social media platform X that he had urged Donald Trump not to impose tariffs on Brazilian companies, arguing that tariffs are not an effective solution to trade disputes.
The White House has not yet responded to requests for comment regarding the proposed measures, leaving key diplomatic and policy questions unresolved as tensions between Washington and Brasília continue to escalate.
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