The United States is imposing 25 per cent tariffs on imports from Brazil, after finding a range of what it deemed unfair trade practices by the world’s 10th-biggest economy.
The tariffs, which were first proposed last month, will take effect July 22.
The order exempts some goods that are not produced in the US or that officials worry would disrupt supply chains. Exempted products include coffee, beef, oranges and orange juice, some oil and gas energy products, and aerospace parts and components.
The Office of the US Trade Representative concluded after a yearlong investigation that Brazil had a range of unfair trade practices, including lax anti-corruption enforcement and unfair tariffs of its own, among other practices seen as unreasonable and unfair. The US, however, has had a goods trade surplus with Brazil for years.
US Trade Representative Jamieson Greer said in a statement that the action was necessary to ensure American workers and companies compete on a level playing field.
“Extensive negotiations with Brazil over the past year have not resolved these issues, but we remain open to continuing negotiations with Brazil to bring about long-needed changes to the problems identified in this investigation,” he said.
After US officials in early June warned that they were proposing the tariffs, Brazilian President Luiz Inácio Lula da Silva reacted with indignation. He instead pointed to political considerations, blaming his rival in the country’s October elections, Senator Flávio Bolsonaro. Bolsonaro had recently visited Washington and is the son of former President Jair Bolsonaro, an ally of President Donald Trump.
Secretary of State Marco Rubio said in a post on X about the announcement of the tariffs: “Let there be no confusion about why: President Lula and his government have not negotiated with the US in good faith. His economic policies are bad for Americans and bad for Brazilians. For the past year, Lula has put his own ego ahead of making a deal for the welfare of the Brazilian people, and these tariffs are the price for that”.
The tariffs are being imposed under Section 301 of the Trade Act of 1974, allowing the US to launch the investigation into Brazil’s trade practices.
The US Supreme Court in February ruled against many of Trump’s tariffs imposed under a different law, the International Emergency Economic Powers Act (IEEPA) of 1977. The court found he overstepped his authority under that act to impose sweeping tariffs on US trading partners, including Brazil.
Trump had, under that law, imposed a 50 per cent tariff on Brazil to protest its prosecution of Jair Bolsonaro for trying to overturn his loss in a 2022 election. But Trump’s relationship with Lula seemed to improve in May when he visited the White House.
-AP
