US tariffs on Brazil: 25% import duties proposed after Section 301 investigation

The Trump administration proposed 25% tariffs on imports from Brazil. The administration said Brazil used trade practices it called unreasonable. The administration said these actions burdened or restricted US commerce. The proposal was announced late Monday. It followed an investigation led by the Office of the US Trade Representative.

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US Trade Representative Jamieson Greer said discussions took place with Brazilian leaders. Greer said meetings with President Donald Trump and President Luiz Inácio Lula da Silva were constructive. Still, Greer said, "we continue to have substantial differences in resolving the issues identified in this investigation.\" Greer’s office scheduled a public hearing for July 6.

Trump administration tariffs on Brazil and Section 301 investigation

The investigation was launched under Section 301 of the Trade Act of 1974. The administration said Brazil showed weak anti-corruption enforcement. The administration also pointed to what it described as unfair Brazilian tariffs. Officials said these issues added costs for US commerce. The proposed 25% tariffs were tied to the findings.

Trade lawyer Ryan Majerus, a partner at King & Spalding, described limits in the plan. Majerus noted the administration excluded more than half of U.S. imports from Brazil. The exclusions included aircraft and key minerals. The carve-outs may reduce the scope of the tariff impact. Even so, the proposal still covered many other products.

Trump administration tariffs on Brazil after US Supreme Court IEEPA ruling

Last year, Trump imposed a 50% tariff on Brazil. The tariff was mainly a protest over Brazil’s prosecution of former president Jair Bolsonaro. Bolsonaro was described as a Trump ally in the report. Bolsonaro faced prosecution for trying to overturn the 2022 election defeat. That earlier tariff used a different US legal tool.

The US Supreme Court ruled in February that Trump went beyond legal authority. The court said the International Emergency Economic Powers Act, or IEEPA, of 1977 was misused. The ruling struck down broad tariffs on US trading partners. That decision included the tariff that targeted Brazil. The administration then leaned on other legal options.

Section 301 tariffs have survived court challenges. The administration was expected to use that power for more tariffs. It also aimed to recover some tax revenue. That revenue was lost after the Supreme Court rejected the IEEPA tariffs. The July 6 hearing was part of the next steps on the Brazil proposal.

With inputs from PTI