The Office of the United States Trade Representative (USTR) has announced a proposal for new 25% tariffs on a range of Brazilian goods under Section 301. This move comes after the USTR determined that Brazil has engaged in practices that are deemed "unreasonable and burden or restrict U.S. commerce."
Key issues highlighted in the USTR's release include concerns over anti-corruption enforcement, intellectual property protection, limited ethanol market access, and illegal deforestation. These factors have contributed to the U.S. decision to initiate the tariff process.
U.S. Trade Representative Jamieson Greer confirmed that the Section 301 investigation was launched directly under the directive of U.S. President Donald Trump. Despite "several constructive meetings" between President Trump and his Brazilian counterpart, Luiz Inácio Lula da Silva, Greer noted that substantial differences remain unresolved regarding the identified trade issues.
A public hearing on the proposed tariffs is scheduled for July 6, offering an opportunity for stakeholders to comment on the action. Section 301 of the Trade Act of 1974 empowers the U.S. president to impose tariffs or other restrictions if an investigation concludes that foreign acts, policies, or practices are unreasonable or discriminatory and burden U.S. commerce.
This is not the first instance of Trump administration tariffs targeting Brazil. In July 2025, Brazil faced a 50% tariff, partly in response to the ongoing prosecution of former President Jair Bolsonaro. However, those duties were later struck down by the U.S. Supreme Court in February, limiting Washington's ability to impose more than a 10% global tariff on exports to the U.S. at that time.
In related trade news, the White House also announced adjustments to existing tariffs on steel, aluminum, and copper imports. Tariffs on agricultural equipment, such as combines and harvesters, will be reduced from 25% to 15%, with an expanded scope of equipment qualifying for this lower rate. Additionally, capital equipment containing at least 85% U.S. steel and aluminum by weight will now qualify for a 10% duty rate, a reduction from the previous 95% requirement.
(Image: Rio de Janeiro, Brazil, with Sugarloaf Mountain and Botafogo Beach in the background. Jeremy Walker | Stone | Getty Images)
