Brazil condemns US move to impose 25% tariffs next week

Brazil has strongly criticized the US administration's decision to impose 25% import duties on a range of Brazilian products starting next week. President Luiz Inácio Lula da Silva's office said in a statement on X that the government repudiates the decision and denies engaging in unfair trade practices.

The tariffs take effect on July 22 and were first proposed last month. Some goods are exempted if not produced in the US or if their inclusion could disrupt supply chains. Exemptions include coffee, beef, oranges and orange juice, some oil and gas energy products, and aerospace parts and components.

The Office of the US Trade Representative said a year-long investigation concluded that Brazil has a range of unfair trade practices, including lax anti-corruption enforcement and unfair tariffs of its own. However, the US has had a goods trade surplus with Brazil for years.

US Trade Representative Jamieson Greer said the action is necessary to ensure American workers and companies compete on a level playing field. He noted that extensive negotiations with Brazil over the past year have not resolved the issues but that the US remains open to continuing discussions.

US Secretary of State Marco Rubio said President Lula and his government have not negotiated in good faith, adding that Lula's economic policies are bad for both Americans and Brazilians. According to Rubio, the tariffs are the price for Lula's failure to reach a deal.

After US officials warned in early June about the proposed tariffs, Lula reacted indignantly, blaming his political rival in the upcoming October elections, Flávio Bolsonaro, the son of former President Jair Bolsonaro. The US Supreme Court in February ruled against many of Trump's tariffs under a different law (IEEPA), but these tariffs are imposed under Section 301 of the Trade Act of 1974.