US to impose 25% tariffs on multiple Brazilian imports
The United States will impose 25% duties on thousands of Brazilian imports including sugar, apparel, paper, and steel starting July 22, while exempting beef, coffee, and rare earth materials.
The Office of the US Trade Representative announced on Wednesday the imposition of 25% tariffs on thousands of Brazilian imports, including sugar, apparel, paper, and steel. These are the first tariffs imposed under the White House's new trade strategy using Section 301 of US trade law, which allows investigations into alleged unfair trade practices.
The tariffs, proposed last month, are set to take effect on July 22 and include broad exemptions. Beef and coffee — both of which have become more expensive for US consumers over the past year amid President Donald Trump's trade war — are exempted. According to the latest Consumer Price Index from the US Labor Department, beef prices are up 11.8% and coffee up 12% year-over-year. Exemptions also cover some rare earth materials, aircraft parts, and certain oil and gas products.
Despite the US maintaining a growing trade surplus with Brazil — $14.4 billion in 2025, up from $7.7 billion in 2024 — the new tariffs follow a year-long investigation that alleged Brazil engaged in unfair trade practices against the US, including issues related to digital trade and illegal deforestation.
Brazilian officials, including President Luiz Inacio Lula da Silva, have long rejected those allegations, suggesting they are politically motivated following Brazil's prosecution of former President Jair Bolsonaro, a key Trump ally, for his involvement in a coup attempt.
Secretary of State Marco Rubio pushed back on Lula in a post on X, claiming the Brazilian leader, who is up for re-election, did not side with the US "in good faith". "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," Rubio said.
The new tariffs come after more than 30 meetings between officials from the two countries. "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," US Trade Representative Jamieson Greer said in a statement.
These are the first tariffs imposed under Section 301 since the US Supreme Court struck down Trump's sweeping global tariffs earlier this year. The high court ruled that the president lacked authority to impose widespread tariffs using the International Emergency Economic Powers Act (IEEPA).
The move comes amid comparable trade negotiations with other governments worldwide, including the European Union, India, Japan, and South Korea. Brazil is also subject to a separate Section 301 investigation set to conclude later this month over allegations of forced labor in dozens of countries.
