U.S. Proposes 25% Tariffs on Brazilian Goods After Trade Probe

The Office of the United States Trade Representative (USTR) proposed 25% punitive tariffs on nearly all Brazilian exports on June 1, 2026. The move follows a Section 301 investigation that determined Brazil's policies on digital trade, intellectual property, ethanol market access, and illegal deforestation are unreasonable and restrict U.S. commerce. These duties partially replace a 50% tariff imposed last year, which the Supreme Court of the United States struck down in February.

Jamieson Greer, the U.S. Trade Representative, stated that despite constructive meetings with Brazilian officials, substantial differences remain regarding Brazil's trade practices. While the tariffs target most sectors—specifically mentioning the PIX instant payment platform—the USTR excluded beef, coffee, rare earths, aircraft parts, crude oil, and pharmaceutical compounds.

President Luiz Inácio Lula da Silva condemned the measures as unilateral and politically motivated. He accused U.S. Secretary of State Marco Rubio and allies of his political rival, Senator Flávio Bolsonaro, of sabotaging diplomatic coordination. The Brazilian government highlighted its low effective tariff rate on U.S. goods and noted a significant U.S. trade surplus. A public hearing is scheduled for July 6, with a final statutory deadline for responsive action on July 15, 2026.