U.S. proposes 25% tariffs on Brazilian goods

The Office of the United States Trade Representative (USTR) has concluded its trade investigation against Brazil and proposed 25% tariffs on Brazilian goods, with exceptions included in a specific list of products. Conducted under Section 301 of the Trade Act of 1974, the measure opens a new public consultation stage before any trade sanctions are adopted.

The USTR said certain acts, policies, and practices by the Brazilian government are “unreasonable” and “burden or restrict” U.S. commerce. With the conclusion of the investigation, the agency proposed corrective measures and opened the case for public input.

The investigation was launched on July 15, 2025, at the direction of U.S. President Donald Trump. The legal deadline for defining and potentially applying corrective measures is July 15, 2026.

The proposal calls for a 25% tariff on all Brazilian goods, although the document includes 73 pages of exceptions. Products that would remain exempt include informational materials, donations, certain meats, fruits, coffee, tea, cereals, seeds, minerals, rare earths, Brazilian aircraft and aircraft parts, as well as organic chemicals, pharmaceuticals, and fertilizers.

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)

The conclusion of the investigation came within the expected timeline for negotiations by the working group created by Brazil and the United States to address trade issues and avoid new tariffs. According to participants in the talks cited by journalist Valdo Cruz’s blog, negotiations scheduled to end on June 5 have not made enough progress to be concluded.

The bilateral group was created after a meeting between President Luiz Inácio Lula da Silva and Trump on May 7 at the White House. Before releasing the final opinion, the USTR had praised the Brazilian government’s “constructive engagement” on social media and expressed hope that trade discussions would continue.

U.S. Trade Representative Jamieson Greer said dialogue between the two governments had intensified, but disagreements remained.

“Over the past year, President Trump and I have had several constructive meetings with President Luiz Inácio Lula da Silva and his cabinet, which have accelerated in recent weeks,” Greer said. “However, we continue to have substantial differences in resolving the issues identified in this investigation. I look forward to continuing engagement with the Brazilian Government in advance of the July 15, 2026 statutory deadline for taking responsive action.”

Pix, deforestation, ethanol, and corruption

The USTR’s final report lays out criticism in six main areas: digital trade, payment services, tariff agreements, deforestation, ethanol, intellectual property, and the fight against corruption.

On digital trade and platforms, the agency said Brazilian courts issued secret orders requiring U.S. social media companies to remove political content, suspend accounts of U.S. residents and, in some cases, enforce decisions with global reach. The document said there had been a ban on disclosing those orders, as well as severe fines, restrictions on assets and bank accounts, and the complete shutdown of at least one website.

Pix is one of the main points questioned in the report. The USTR said the Central Bank favors the payment system by acting simultaneously as regulator and owner of the platform, mandating its use and limiting fees charged by U.S. competitors.

The United States also challenged trade agreements signed by Brazil with Mexico and India. The argument is that Brazil grants lower tariffs to hundreds of products from those markets in sectors considered globally competitive.

On the environmental front, the report said Brazil has a legal framework to combat illegal deforestation, but has historically failed to enforce it effectively, allowing the problem to persist.

The ethanol market was another target of criticism. The USTR said Brazil ended tariff treatment considered balanced in 2017 and has since failed to offer reciprocity to U.S. fuel exports.

On intellectual property, the document cited insufficient enforcement of anti-counterfeiting laws, slow patent reviews, and a lack of ongoing anti-piracy measures. The United States also criticized the National Institute of Industrial Property (INPI), saying biopharmaceutical patents can take up to 109 months to be reviewed.

On corruption, the USTR concluded that Brazil does not adopt sufficient measures against corruption and bribery. The report mentioned the Supreme Court’s 2023 annulment of cases from Operation Car Wash, renegotiations of leniency agreements it described as lacking transparency, and Brazil’s decline in Transparency International’s Corruption Perceptions Index.

Fonte: Valor International

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