U.S. proposes additional 12.5% tariff on Brazilian goods

The Trump administration is proposing additional tariffs of 12.5% on goods from Brazil, as well as China, Japan, India, South Korea, Switzerland, and dozens of other countries, following an investigation into imports allegedly produced with forced labor.

A report released early Wednesday by the Office of the United States Trade Representative (USTR) also states that Canada, Mexico, Taiwan, the United Kingdom, and other countries and territories would face an additional 10% tariff for allegedly failing to adequately enforce bans on imports of goods made with forced labor.

In a statement, U.S. Trade Representative Jamieson Greer said the failure of the country’s major trading partners to combat imports of goods produced with forced labor is unacceptable because it forces U.S. workers to compete on unequal terms in the global marketplace. According to Greer, all U.S. trading partners must do more to ensure that international trade does not encourage or perpetuate forced labor.

The USTR argues that failing to prevent such imports constitutes an “unreasonable” practice that burdens or restricts U.S. commerce. The latest round of proposed tariffs could unsettle trading partners already hit by successive tariff measures since Donald Trump returned to the presidency at the start of last year.

The new tariffs would not take effect immediately, as they remain subject to public consultation and review. Public hearings on the proposal are scheduled to begin on July 7.

The investigation was conducted under Section 301 of the Trade Act of 1974 and would allow Trump to bypass limitations imposed by the Supreme Court on his tariff policies. The report concluded that 60 countries under review had failed to effectively enforce bans on imports of goods produced with forced labor.

The document defines forced labor as any work or service exacted from a person under the threat of a penalty and for which the individual has not volunteered. The report cites estimates from the International Labor Organization indicating that 27.6 million people were subjected to forced labor in 2021.

Among the products considered most vulnerable to the use of forced labor are rice from Myanmar, tobacco from Malawi, beef from Brazil, as well as cotton and polysilicon from China.

The proposed tariffs come a day after the Trump administration announced plans to impose 25% tariffs on Brazilian imports, arguing that the world’s tenth-largest economy engages in trade practices deemed “unreasonable” and harmful to U.S. commerce. According to the USTR, an investigation found that Brazil inadequately enforces anti-corruption laws and maintains what it considers unfair tariff policies, among other concerns.

According to DataLiner-featured data, Brazil’s two most exported products to the United States were beef and plywood. The chart below shows the top 10, based on Datamar container data:

Top Products Exported to the United States | Jan-Apr | 2026 | TEUs

Source: DataLiner (click here to request a demo)

In the nearly 100-page forced-labor report, the USTR argues that even when a country prohibits forced labor domestically, importing goods produced under such conditions violates the principles of fair trade.

The document also provides for exemptions or reduced tariffs on certain items, including selected textile products, tomatoes, bananas, coffee, and some metals.

Source: Valor International

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