U.S. imposes 25% tariff on Brazilian goods amid Trump-Lula feud - UPI.com

U.S. Proposes 25% Tariff on Most Brazilian Imports After Trade Investigation

July 16 (UPI) -- The Office of the United States Trade Representative announced late Wednesday a proposed 25% tariff on most Brazilian imports, citing findings from a Section 301 investigation into Brazilian policies on digital trade, intellectual property protection, ethanol market access and enforcement of environmental regulations.

U.S. Trade Representative Jamieson Greer stated that the investigation, initiated July 15, 2025, identified practices that unreasonably burden or restrict U.S. commerce. The tariffs are scheduled to take effect July 22 pending further procedural steps, including hearings.

The action follows a letter sent by President Donald Trump to Brazilian President Luiz Inacio Lula da Silva in which Trump described the trial of former President Jair Bolsonaro as a "Witch Hunt that should end IMMEDIATELY." A prior 50% tariff proposal on Brazilian products was later struck down by the U.S. Supreme Court. Bolsonaro was sentenced in September to more than 27 years in prison on charges related to plotting a coup after his 2022 election loss to Lula.

Greer said Brazilian measures in several sectors have prevented U.S. access to Brazil's market of more than 210 million consumers. "Safeguarding American economic interests against unfair trade practices is the bedrock of President Trump's America First policies," Greer said. "Today's action is necessary to address these unfair practices to ensure American workers and companies can 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."

Secretary of State Marco Rubio said the Lula government had not negotiated in good faith. "President Trump directed the USTR to impose a 25% tariff on most Brazilian imports. Let there be no confusion about why: President Lula and his government have not negotiated with the U.S. in good faith," Rubio said. "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."

Lula condemned the proposed tariffs, attributing them to "active collaboration with the Bolsonaro family." He said Brazil would activate procedures under the Reciprocity Law approved by the National Congress and pursue the matter through the World Trade Organization dispute settlement mechanism. "There is no justification for unilateral measures" against Brazil, Lula stated, noting that the United States has recorded a $424.5 billion trade surplus with Brazil over the last 15 years. He added that his administration had remained at the negotiating table.

The USTR investigation specifically examined Brazilian policies affecting intellectual property enforcement, restrictions on ethanol imports, digital trade rules and enforcement against deforestation. These areas were identified as creating barriers for U.S. exporters and farmers. The proposal applies to most but not all categories of Brazilian goods.

Brazilian officials have not yet detailed the specific measures they intend to pursue under the Reciprocity Law. The United States and Brazil maintain ongoing trade relations in sectors including agriculture, aircraft and energy, with annual bilateral goods trade exceeding $100 billion in recent years.

Acting Attorney General Todd Blanche was sworn in at a Senate Judiciary Committee hearing on his nomination on Wednesday. Blanche has served in an acting capacity since April.