World

US sets 25% tariffs on many Brazilian goods

The duties, due July 22, cover thousands of imports but spare beef, coffee and other products that have risen in price for US consumers.

James Whitfield

By James Whitfield · Staff Writer

3 min read

US sets 25% tariffs on many Brazilian goods
Photo: Al Jazeera

The United States plans to add 25% tariffs on thousands of Brazilian imports, a move that could raise costs for a wide range of goods while testing relations with one of Washington’s major trading partners. The US trade representative announced the duties late Wednesday, saying they follow a yearlong review of Brazil’s trade practices.

The tariffs are scheduled to begin July 22 and will apply to categories including sugar, clothing, paper and steel, according to the US trade representative. The action is the first tariff package under the White House’s revised trade policy using Section 301, a US trade law tool that allows Washington to investigate and respond to practices it calls unfair.

Exemptions cover beef, coffee and aircraft parts

The US trade representative said the tariff list includes broad exemptions. Beef and coffee are excluded, along with some rare-earth materials, aircraft components and certain oil and gas products.

The exclusions come after sharp price increases for two common consumer items. The US Labor Department’s latest Consumer Price Index report said beef prices were 11.8% higher than a year earlier, while coffee prices were up 12%.

The Trump administration has said the Brazil case centers on alleged unfair treatment of US interests, including digital trade issues and illegal deforestation-related concerns. US officials said the investigation lasted about a year before the tariff decision.

Brazilian officials, including President Luiz Inacio Lula da Silva, have rejected the allegations. Lula and other officials have argued that the US action is politically driven and tied to Brazil’s prosecution of former President Jair Bolsonaro, an ally of US President Donald Trump, over an alleged coup attempt.

Rubio faults Lula as talks fail to settle dispute

Secretary of State Marco Rubio disputed Lula’s position in a post on X, saying the Brazilian president had not dealt with the United States “in good faith.” Rubio wrote: “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.”

US Trade Representative Jamieson Greer said talks with Brazil had not produced an agreement. “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,” Greer said in a statement.

The negotiations included more than 30 meetings between officials from the two governments, according to the trade representative’s office. The new duties are being imposed even as the United States runs a trade surplus with Brazil, which grew to $14.4 billion in 2025 from $7.7 billion in 2024, according to the figures cited in the announcement.

The Brazil tariffs are the first Section 301 duties imposed since the US Supreme Court struck down Trump’s earlier global tariff program. The court ruled that the president did not have authority to impose broad tariffs under the International Emergency Economic Powers Act.

The decision comes as Washington pursues similar trade talks with the European Union, India, Japan and South Korea. Brazil is also part of a separate Section 301 investigation, expected to conclude later this month, involving allegations of forced labor in dozens of countries.

This story draws on original reporting from Al Jazeera.