The Trump administration has proposed a new 25% punitive tariff on many Brazilian imports, citing a broad range of unfair trade practices from digital services and intellectual property protection to preferential tariffs and illegal deforestation, U.S. Trade Representative Jamieson Greer announced on Monday.
The measures, pursued under Section 301 of the Trade Act of 1974, mark another aggressive use of the statute that Trump previously wielded extensively against China during his first term. The proposed tariffs would exclude certain sensitive or strategically important products, including beef, coffee, rare earths, other metals and ores, and aircraft parts. They would not apply to items already subject to national security tariffs under Section 232, such as steel, aluminum, copper, and related finished products, as well as motor vehicles and auto parts.
Greer framed the action as a necessary response to longstanding issues, saying: “The United States and Brazil continue to have substantial differences in resolving issues identified in this investigation.”
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The USTR’s investigation, launched last year, concluded that Brazilian practices “are unreasonable and burden or restrict U.S. commerce,” opening the door for retaliatory measures. Public comments are invited until July 1, with a hearing scheduled for July 6 and a final decision deadline of July 15.
This latest escalation comes despite a White House visit last month by Brazilian President Luiz Inácio Lula da Silva. Bilateral relations have cooled considerably since then. U.S. Secretary of State Marco Rubio’s recent designation of Brazil’s two largest criminal gangs as terrorist organizations, over Brasilia’s objections, has further strained ties. Days earlier, Lula’s political rival, Senator Flavio Bolsonaro, had advocated for the terrorist label during meetings in Washington with Rubio, Vice President JD Vance, and President Trump.
“I expressly asked President Trump not to tariff our companies. Tariffs are not the solution,” Flavio Bolsonaro said on X.
Two Brazilian officials familiar with the matter told Reuters that the U.S. justifications ignored many of Brasilia’s arguments presented in recent months, suggesting the motives were more political than technical.
Context of Previous Tariffs and Supreme Court Ruling
The proposed 25% tariff would partially replace a 50% duty on many Brazilian goods that Trump imposed last year as punishment for Brazil’s prosecution of Flavio Bolsonaro’s father, former President Jair Bolsonaro. That measure was struck down by the U.S. Supreme Court in February, prompting the administration to pursue this new, broader Section 301 action.
The current proposal reflects a pattern of using trade policy as leverage on multiple fronts — economic, political, and ideological. It also aligns with the administration’s wider use of Section 301 investigations, including ongoing probes into excess industrial capacity in China and other partners, forced labor practices in 60 countries, and a new investigation into Vietnam’s intellectual property policies opened on Friday.
The tariffs could hit key Brazilian export sectors, though the exclusions for beef, coffee, and certain metals provide some relief. The country is a major supplier of these commodities to the U.S., and any disruption could ripple through global supply chains, potentially affecting food prices and industrial inputs.
The move exacerbates tensions in U.S.-Brazil relations at a time when both nations are navigating complex domestic political landscapes. Lula’s government has sought to maintain pragmatic ties with Washington while pursuing independent foreign policy positions, including stronger engagement with China and BRICS partners.
The terrorist designation of Brazilian gangs and the tariff threat risk undermining cooperation on issues like regional stability, counter-narcotics, and Amazon conservation.
From a broader trade perspective, the action reinforces the Trump administration’s preference for bilateral pressure over multilateral frameworks. It also highlights ongoing concerns in Washington about digital trade barriers, intellectual property enforcement, and environmental practices in emerging markets. Illegal deforestation in the Amazon has been a recurring point of friction, with U.S. policymakers linking it to both environmental and trade issues.
Potential Market and Global Ripple Effects
However, analysts believe the proposed tariffs could influence commodity markets, particularly for Brazilian exports not explicitly exempted. Coffee and beef prices may face volatility if the measures are implemented, while metals and aircraft parts exclusions suggest strategic considerations — protecting U.S. industries that rely on Brazilian inputs or avoiding disruption in aerospace supply chains.
For global investors, the development spells more trouble. Some analysts have warned that emerging market currencies and assets could come under pressure if similar actions are taken against other countries. Conversely, it may accelerate diversification efforts by U.S. companies seeking to reduce exposure to nations perceived as high-risk under current U.S. trade policy.
The USTR’s move is seen as a part of a wider pattern of assertive trade enforcement. With multiple Section 301 investigations active, the Trump administration is signaling a willingness to use tariffs as a tool for both economic rebalancing and geopolitical leverage, even though the weight is limited this time.
The proposed tariffs remain subject to public consultation and final review. Their ultimate scope and implementation could still be adjusted based on diplomatic developments or domestic political calculations.